Fitch rates Latam notes B+

Fitch Ratings said it assigned an expected rating of B+ with recovery rating of RR4 to Latam Airlines Group SA's proposed unsecured notes to be issued through its fully owned subsidiary, Latam Finance Ltd.

The notes will be fully guaranteed by Latam. The target amount for the proposed transaction is in the $500 million to $700 million range.

The total amount and tenor for the proposed issuance will depend on market conditions, Fitch said.

The proceeds from the proposed issuance are expected to be used for general corporate purposes, the agency noted.

Latam currently has a long-term issuer default rating of B+ with a positive outlook.

The ratings are supported by the company's diversified business model, important regional market position and adequate liquidity, Fitch said.

The ratings are tempered by the company's still high gross adjusted leverage and operational volatility related to some of its key markets, the agency said.

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