Fitch Publishes Financial Forecast Dashboard for Latin American Airlines

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings expects Latin American airlines' credit quality to remain under pressure due to the weak macro and business environment in the region. The strength of the U.S. dollar relative to various currencies in Latin America also remains a concern. Operational performance should continue to reflect lower revenues, declining yields partially offset by lower fuel costs and limited improvement in operational performance during the balance of 2015. Adjusted financial leverage is expected to remain high and the leading airlines will continue to focus on cost control.

Lowering capex to avoid negative free cash flow (FCF) generation will be key to minimizing cash burn and negative rating actions. Positively, most of the leading airlines have adequate liquidity to face the challenging market conditions.

This dashboard includes Fitch's forecasts for the top three regional players:

--LATAM Airlines Group S.A. (LATAM, 'BB-'/Outlook Stable);

--Avianca Holdings S.A. (AVH, 'BB-'/Outlook Negative);

--GOL Linhas Aereas Inteligentes S.A. (GOL, 'B-'/Outlook Stable).

Fitch's three-year financial forecast for each rated issuer are included in the following full rating reports:

--LATAM Airlines Group S.A. (October 2015);

--Avianca Holdings S.A. (October 2015);

--GOL Linhas Aereas Inteligentes S.A. (October 2015).

Additional information is available at 'www.fitchratings.com'.

Airlines' Financial Forecast Dashboard

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873117

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151102006243/en/

Fitch Ratings
Jose Vertiz
Director
+1-212-908-0641
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
or
Media Relations:
Alyssa Castelli, +1 212-908-0540
[email protected]

Source: Fitch Ratings

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