S&P Downgrades Azul’s Credit Rating to CC Amid Debt Restructuring

S&P Global has downgraded the credit rating of Brazilian airline Azul from CCC+ to CC, with a negative outlook, following the airline’s recent financing agreement with bondholders. This move reflects S&P’s view that the restructuring deal, aimed at providing Azul with additional liquidity, qualifies as a “distressed” transaction. The downgrade signals ongoing financial strain for Azul, which has been navigating high debt levels and market challenges exacerbated by the slow recovery of global air travel.