S&P turns Gol outlook to stable

S&P said it changed its outlook for Gol Linhas Aereas Inteligentes SA to stable from positive.

“Despite the absence of sizeable short-term maturities, a slower-than-expected recovery in margins and limited access to capital markets have heightened cash-flow risks. While during the first seven months of 2022, Gol's available seat kilometers (ASK) and revenue passenger kilometers (RPK) rebounded considerably, the pace has been slower than our expectations last year. This, coupled with much higher fuel costs, will result in EBITDA of R$2 billion, down from our forecast of R$3.4 billion,” S&P said in a press release.

Concurrently, the agency affirmed Gol’s CCC+ issuer and senior unsecured ratings. The 4 recovery rating on its notes, indicating average (30%-50%; rounded estimate: 30%) recovery in default, is unchanged.

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