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S&P rates Latam notes B+
S&P said it assigned a B+ rating to Latam Finance Ltd.'s proposed senior unsecured notes due 2024.
The issue of $500 million will have a three-year amortization, in 2022, 2023 and 2024, the agency said.
The rating on the proposed issue reflects the full and unconditional guarantee of holding company Latam Airlines Group SA, S&P said.
The proceeds will be used for liability management with senior unsecured bonds at TAM SA, the agency explained.
The issue rating is currently one notch lower than Latam’s BB- corporate credit rating, reflecting the subordination of the senior unsecured notes to the group's secured debt, which includes financial and operating leases, S&P said.
The issue is not expected to have an impact on the company's leverage metrics, but will allow for some improvement in its debt-amortization profile and a slight reduction in interest charges over the medium term, the agency said.
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