...Azul S.A.'s 'B-' rating reflects material improvement in its credit metrics, following an approximately 42% haircut on debt and reductions in fleet and lease costs. The rating remains constrained by the industry's high volatility and Azul's limited financial flexibility, including a lack of unencumbered assets, limited liquidity, and the company's post-restructuring debt. The notes are secured by a first lien on Azul's brand and intellectual property and by receivables and investments in selected subsidiaries. Azul used proceeds from the exit notes, along with other initiatives, to refinance the USD1.57 billion debtor-in-possession (DIP) financing, pay restructuring expenses, and for general corporate purposes. Fitch Ratings has withdrawn Azul Secured Finance LLP's previous senior secured long-term ratings and Azul Investments LLP's senior unsecured long-term ratings because those notes have been paid in full....
