S&P downgrades Avianca

Standard & Poor’s said it lowered the corporate credit rating on Avianca Holdings SA to B from B+.

The agency also said it lowered the rating on the company’s $550 million senior unsecured notes due 2020 to B- from B.

The outlook is stable.

The downgrades reflect continued weakness in the company’s continued operating performance, leading to key credit metrics that fell short of original expectations, S&P said.

Avianca has faced a combination of challenges in 2015 and during the first quarter of 2016, including regional sluggish macroeconomic growth that impacted ticket demand and consumption patterns, the agency said.

The stable outlook reflects a view that Avianca’s credit metrics will remain exposed to sluggish economic growth and a volatile exchange rate over the next 12 months, S&P said.

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