SAO PAULO – Fitch Ratings downgraded its ratings for Brazilian airlines TAM S.A. (TAM) and GOL Linhas Aereas Inteligentes (GOL), it said late Monday in a press release.
Fitch downgraded its rating for TAM, Brazil’s largest airline company, to “BB-” from “BB”.
“The downgrades reflect the deterioration in TAM’s credit profile, a result of the combination of high leverage and greater use of its formerly robust but still satisfactory liquidity position to finance its business,” said Fitch.
In the meantime, the rating agency downgraded GOL to “B+” from “BB”.
“The rating downgrades reflect continued deterioration of GOL’s credit profile due to higher leverage levels than previously anticipated, as a result of the sharp devaluation of the Brazilian currency, and a slowdown of demand for air transportation in Brazil,” it said.