Localiza and Latam Airlines receive positive credit rating updates

Fitch Ratings has reaffirmed the long-term credit ratings for Localiza at ‘BB+’ for foreign and local currencies and ‘AAA(bra)’ for national ratings, maintaining a stable outlook. The agency cited the company’s leadership in the Brazilian vehicle rental and fleet sector, its scale, and resilient operational performance. Fitch expects Localiza to gradually increase its EBITDA, projecting net revenue of R$ 50 billion and an EBITDA of R$ 15 billion this year.

Separately, S&P Global Ratings upgraded Latam Airlines Group’s credit rating from ‘BB’ to ‘BB+’ with a stable outlook. The upgrade is driven by the company’s operational performance, cash generation, and expansion in Brazil. Despite an 80% year-on-year increase in fuel costs, Latam saw passenger revenue rise by 27.9% in the second quarter. S&P projects an adjusted EBITDA of US$ 4.3 billion for 2026.