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GOL Linhas Aereas Inteligentes S.A. (GoI), the Brazilian airline was downgraded to D by both S&P and Fitch last Friday, after the company filed for bankruptcy protection under Chapter 11 on the previous day. GoI’s senior unsecured bonds were also downgraded to D and C by S&P and Fitch respectively from CC. According to both rating agencies, the debt burden of the company continues to remain high due to pressure on its cashflows following the delays in new aircraft deliveries from the manufacturer and higher lease payments. Both the agencies had previously cut GoI’s ratings in December, when it announced restructuring.
Gol’s 7% 2025s has dropped by almost 20 points since the start of the year and is currently trading at distressed levels of 13.3 cents on the dollar.