Moody’s lifts Abra Group

Moody's Investors Service said it upgraded Abra Group Ltd.’s corporate family rating to Caa1 from Caa3.

At the same time, Moody's upgraded to Caa1 from Caa3 the ratings on the $960 million backed senior secured notes and $458 million backed senior secured exchangeable notes due 2028 issued by Abra Global Finance and unconditionally and irrevocably guaranteed by Abra.

The outlook for Abra and Abra Global Finance was changed to stable from negative.

The agency said the upgrade of Abra's ratings follows Gol Linhas Aereas Inteligentes SA's ability to secure a final court order for a $1 billion debtor-in-position financing as part of its Chapter 11 financial reorganization process, which includes clauses that secure the continuity of interest payment to Abra.

As part of the final order of the DIP, Gol will also reimburse $15 million to Abra related to a bridge loan made in January.

The continuity of Gol's interest payments to Abra during its Chapter 11 process increases visibility over Abra's cash interest coverage, Moody’s said.

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