S&P assigns B+ to Latam notes

S&P said it assigned a B+ issue-level rating to Latam Finance Ltd.'s proposed senior unsecured notes.

The issue of up to $750 million has a proposed weighted average term of seven years.

The rating on the proposed issue reflects the full and unconditional guarantee of holding company, Latam Airlines Group SA (BB-/stable/--). The latter will use the proceeds from the issue for general corporate purposes.

S&P said the proposed issues-level rating is one notch below the BB- corporate credit rating, reflecting the subordination of the senior unsecured notes to the group's secured debt, which includes financial and operating leases. The agency’s current base-case scenario on Latam already incorporates the need to access the debt market for refinancing purposes.

Therefore, S&P said it does not expect the issue to have an impact on the company's forecasted leverage metrics.

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