Fitch upgrades GOL

Fitch Ratings said it upgraded GOL Linhas Aereas Inteligentes SA’s long-term foreign- and local-currency issuer default ratings to CCC+ from CCC- and upgraded its long-term national scale rating to B-(bra) from CCC(bra). Fitch also upgraded GOL Finance’s unsecured bonds to CCC+/RR4 from CCC-/RR4.

The upgrades follow the payment of its $300 million term loan B that was guaranteed by Delta Air Lines (BB+/RON), and refinancing of local debentures and working capital credit lines, Fitch said.

“The new ratings incorporate an expectation of access to new financing from various sources, as well as decreased pressure on the company’s cash flow due to the completion of relief measures with lessors. Cash flow should also benefit from better industry dynamics in the Brazilian domestic market, the backbone of GOL’s operations, and the ongoing cost reductions initiatives,” Fitch said in a press release.

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