...- Mexico's leading airline Grupo Aeromexico S.A.B. de C.V. (Aeromexico) emerged from chapter 11 proceedings on March 17, 2022 (effective date). Afterwards, the company issued $763 million under a first lien 8.5% senior secured exit notes due 2027. - On April 13, 2022, S&P Global Ratings raised its global scale issuer credit rating to Aeromexico to 'B-' from 'D'. We also assigned our 'B' issue-level rating to the company's new notes, one notch above the issuer credit rating, given our recovery rating of '2' reflecting our expectation for substantial recovery (70%-90%; rounded estimate: 80%) in the event of a payment default. - The developing outlook reflects our view that Aeromexico could experience a slower-than-expected cash flow recovery if oil prices continue increasing, while the company takes the actions to mitigate the negative effects on its jet fuel costs. This could impair its cost structure reorganization, which aims to raise EBITDA while air passenger traffic continues to recover....
