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Investing.com -- Brazilian airline Azul S.A. has seen its credit ratings downgraded by S&P Global Ratings following a distressed debt exchange. The company recently completed the settlement of its announced debt exchange for its 2028, 2029, 2030, and convertible notes. This transaction is considered distressed and equivalent to default as creditors will receive less than initially promised.
In addition to this, Azul has also issued its $500 million super priority notes due in 2030. On January 29, 2025, S&P Global Ratings lowered both its global and national scale issuer credit ratings on Azul to ’SD’ (selective default) from ’CC’ and ’brCC’, respectively. The ratings agency, however, maintained its issue rating on the 2026 senior unsecured notes at ’CCC-’, as these were not part of the exchange.
S&P Global Ratings has indicated that it will evaluate Azul’s new capital structure in the coming days and is likely to raise the ratings.
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