Fitch downgrades Azul

Fitch Ratings said it downgraded Azul SA's long-term foreign and local currency issuer default ratings to CCC- from CCC+, and its national scale rating to CCC-(bra) from B(bra). Fitch also cut Azul Investments LLP's unsecured notes to CCC-/RR4 from CCC+/RR4.

“The downgrades reflect Azul's high refinancing risks, operating cash flow pressure due to current and deferred leases payments, liquidity deterioration per Fitch's criteria, and the more restrictive local credit market due to Americanas' default. Fitch's view of a less friendly renegotiation backdrop with lessors and other main suppliers, despite their proven support during the pandemic, is also considered in this rating action,” the agency said in a statement.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.