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S&P could cut GOL Linhas
Standard & Poor's said it placed its B- global scale corporate credit and issue-level ratings on GOL Linhas Aereas Inteligentes SA (GOL) on CreditWatch with negative implications.
At the same time, the agency lowered its national scale corporate credit rating on the company to brB- from brB and placed them on CreditWatch negative. The 4L recovery ratings on GOL's senior unsecured debt, which reflect expectations of average recovery (30%-50%; the lower end of the range), remain unchanged.
S&P also affirmed its BB rating on GOL's term loan, Delta Air Lines Inc. guarantees. The 5L recovery rating on this loan, which reflects expectations of modest recovery (10%-30%; the lower end of the range), remains unchanged.
S&P said the CreditWatch placement reflects the increasing risks of weak operating performance, which would continue to deplete GOL's cash position. Such scenario could raise concerns of GOL's failure of meeting its financial obligations in the next 12 to 18 months.
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