Fitch clips Gol rating

Fitch Ratings said it lowered GOL Finance Inc.'s unsecured bonds to CC/RR5 from CCC/RR5 and its parent Gol Linhas Aereas Inteligentes SA’s long-term foreign- and local-currency issuer default ratings to CCC- from CCC+.

On Dec. 1, Gol reported it hired Seabury Capital to help it with a broader review of its capital structure, including full liability management (financial and leasing obligations) seeking to reprofile all its debt scheduled amortizations and other measures to reinforce liquidity.

The airline’s talks with its lessors continue. “Different from others players in the region, Gol has not yet completed a full renegotiation of its leasing obligations,” Fitch said in a press release.

Concerning the lower ratings, the agency explained, “The downgrades reflect increasing risks of Gol's debt restructuring as a result of its ongoing high refinancing risks, operating cash flow pressure due to current and deferred leases payments and weak liquidity position. The assessment incorporates the company´s recent announcement of hiring a financial advisor to review its capital structure.”

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