S&P lowers TAM

Standard & Poor's said it lowered the corporate credit rating on TAM SA to B+ from BB- and its national scale rating to brBBB+ from brA.

The outlook is stable.

"The rating action reflects our expectation that TAM's credit metrics will remain aggressive in the next years, despite improving market conditions in Brazil," S&P analyst Reginaldo Takara said in a statement.

TAM's business profile is weak, the agency said.

The company benefits from a strong, leading position in the fairly concentrated air transportation market in Brazil, with a market share of 42.3% through April 2010, the agency noted.

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