Fitch Lowers Gol

Fitch has downgraded Gol’s rating to B minus from B+, it says, based on a weakening credit profile. The agency notes that the Brazilian airline has experienced decreasing cash flows in the three years through December 2012, and is facing increasing fuel costs, currency depreciation, and rising competition. Gol’s Ebitdar margin fell to 3.2% in 2012, from 9.0% in 2011 and 22.0% in 2010. The outlook is negative. S&P recently placed Gol’s B credit rating on negative watch, citing poor performance.