S&P lifts GOL LuxCo loan to BB+

S&P Global Ratings said it reviewed its recovery and issue-level ratings on GOL Linhas Aereas Inteligentes SA (GOL) that were labeled as "under criteria observation" (UCO) after the Dec. 7 publication of a revised recovery ratings criteria. With the criteria review complete, S&P said it is removing the UCO designation from these ratings and raising the issue-level rating on GOL LuxCo SA's $300 million term loan to BB+ from BB. S&P also revised the recovery rating on this debt to 4, indicating an expectation of average (30% to 50%; higher half of the range) recovery in the event of default from, 5.

S&P also affirmed the CCC issue-level rating on the senior unsecured notes, which VRG Linhas Aereas SA (due 2023), GOL LuxCo (2022) and GOL Finance Inc. (2020) issued. The recovery ratings on these debts remain at 4, but on the lower end of the 30%-50% range.

The rating on the term loan continues to reflect Delta Air Lines Inc.’s (BB+/positive) full guarantee, and the higher recovery expectation on this debt due to higher recovery rating on Delta's unsecured debt following the application of the revised recovery criteria.

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