Fitch cuts Avianca Holdings to C

Fitch Ratings said it downgraded Avianca Holdings SA's long-term foreign and local currency issuer default rating to C from CCC-. The agency removed the ratings from rating watch negative.

“This downgrade follows the announcement by Avianca that it has deferred payments on principal for certain loan obligations, in addition to lease agreements. No repayment acceleration has been requested,” Fitch said in a press release.

Avianca announced it ceased operating all regular passenger flight operations until at least April 12, 2020, following a local government announcement closing Colombian airspace as of March 25.

“Seeking to preserve cash, the company has announced the payment deferrals and a cut in all non-essential capital expenditures, and is working on agreements with its key suppliers, strategic lenders and other creditors to restructure its payments under the new cash flow scenario,” Fitch said.

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