Moody's rates Gol Linhas note Ba2

Moody's Investors Service said it affirmed Gol Linhas Aereas Inteligentes SA's corporate family rating at Ba2 and assigned a Ba2 rating to Gol Finance's proposed senior unsecured notes.

The outlook is stable.

The agency said Gol has successfully deployed its low-cost operating model as a passenger airline in Brazil to become one of the country's leading carriers, with a network that is still growing in Brazil as well as across South America. Operating margins are high relative to other airline competitors due, in part, to Gol's relatively low labor costs, and low costs have enabled the airline to stimulate the local passenger traffic during a period of solid economic growth for Gol's primary Brazilian markets.

Gol has aggressive expansion plans with firm orders for 76 new B737-800 aircraft over the next several years. Moody's said that as these aircraft are delivered, debt is likely to increase and the company's ability to sustain its credit metrics will depend on its ability to profitably employ these aircraft and achieve continuous improvement in operating performance.

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