Fitch Ratings has affirmed Azul S.A.'s (Azul) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'CCC+' as well as the 'CCC+'/RR4 rating of the senior unsecured notes due in 2024 that were issued by Azul Investments LLP. Fitch has upgraded Azul's Long-Term National Scale rating to 'B' (bra) from 'CCC(bra)'. Fitch has assigned Positive Rating Outlooks to Azul's international and national scale ratings.
Fitch has also assigned a 'CCC+/RR4' rating to up to US$600 million of five to seven years unsecured notes to be issued by Azul Investments, which will be fully guaranteed by Azul and its subsidiary Azul Linhas Aereas Brasileiras S.A. The use of the proceeds is for general corporate purposes.
Fitch states that its Positive Outlooks reflect Azul's improved liquidity position and financial flexibility over the last few quarters. It also incorporates Azul's strong domestic business position and network that should benefit from a rebound in domestic air traffic during the second half of 2021 as the vaccination plan is rolled-out in Brazil.