Fitch cuts several Latin American airlines

Fitch Ratings said it downgraded the foreign-currency issuer default rating of Latam Airlines Group SA, and the foreign- and local-currency IDRs of Azul SA and GOL Linhas Aereas Inteligentes SA one or two notches, to B-. All ratings remain on rating watch negative.

“Elevated uncertainty regarding the size and duration of the cash flow burn during the next 12 months were key factors supporting the rating action, as was the deterioration of the financial flexibility enjoyed by these airlines. The coronavirus pandemic has resulted in sharp drops in airline passenger activity due to travel bans, social distancing and sharp economic downturns in the region and throughout Europe and North America,” Fitch said in a press release.

Fitch also downgraded Azul Investments LLP to B- from B, GOL Finance to B- from B, and GOL Linhas Aereas SA to B- from B. The downgrades to B- include the senior unsecured ratings.

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