LATAM confident of regaining its investment-grade debt rating

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By TESTCustomwebLP TESTCustomwebLP April 30, 2014 13:58

LATAM confident of regaining its investment-grade debt rating

Speaking at the company’s annual general meeting, Andres Osorio, Chief Financial Officer of LATAM, has stated that he expects to regain LATAM’s investment-grade status by the end of 2015 or the first half of 2016. He is so confident since he predicts LATAM to end the year with a considerably lower debt-to-earnings EBITDA ratio of 4.2 or 4.3 times, down from 4.9 at the end of 2013 and 7.2 in 2012.

Osorio told shareholders that a ratio of 4.2 or 4.3 “would leave us in a range for investment grade”, while its improvement in operating margins would also help. LATAM is aiming for an operating margin of between 6% and 8% in 2014 on the back of staff cuts and reduction in Brazilian capacity.

LAN lost its investment grade rating when it merged with TAM in 2012 and it was downgraded to junk status.

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By TESTCustomwebLP TESTCustomwebLP April 30, 2014 13:58
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