Fitch cuts Latam

Fitch Ratings said it downgraded Latam Airlines Group SA to D from CC and its national scale rating to D(cl) from CC(cl).

“The downgrades to D follow Latam's announcement that it, together with its affiliates in Chile, Peru, Colombia, Ecuador and the United States, initiated a reorganization and restructuring of their debt under Chapter 11 protection in the United States,” Fitch said in a press release.

Fitch affirmed Latam Finance Ltd.’s unsecured notes at C, but revised the recovery rating to RR6 from RR5.

The revision of the recovery rating reflects the added subordination of this debt and lower expected recoveries following the announcement that Latam's main shareholders intend to provide $900 million of senior secured debtor-in-possession financing, the agency said.

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