Moody’s assigns B2 to Latam notes

Moody's Investors Service said it assigned a B2 foreign currency rating to the proposed $500 million senior unsecured notes due in 2024 to be issued by Latam Finance Ltd. and fully and unconditionally guaranteed by Latam Airlines Group SA (B1 stable).

Latam’s B1 corporate family rating remains unchanged.

The outlook is stable.

Proceeds will be used for debt refinancing and general corporate purposes.

Moody’s said the B2 rating stands one notch lower than Latam Airlines' B1 corporate family rating in order to reflect the effective subordination of those unsecured creditors to the company's other existing secured debt.

The notes will be senior unsecured obligations of the Latam Finance and will be unconditionally and irrevocably guaranteed on a senior unsecured basis by Latam Airlines.

As such, it will rank at the same level of Latam Airlines' other senior unsecured obligations and below all the company's existing and future secured claims, the agency explained.

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