LATAM Credit Rating Rises to BB+ as S&P Rewards Its Fuel-Shock Resilience
S&P raised the LATAM credit rating to BB+ on 21 September 2026, one step below investment grade, citing strong cash flow despite costlier jet fuel. The post LATAM Credit Rating Rises to BB+ as S&P Rewards Its Fuel-Shock Resilience appeared first on The Rio Times .
S&P Global Ratings has raised LATAM Airlines Group's credit rating to BB+ from BB, with a stable outlook. The move comes as the Chile-based airline group, the region's largest, demonstrated strong performance in the first half of 2026 despite soaring jet fuel prices. LATAM's revenue per available seat kilometre rose 17.5% year-over-year, driven by fare increases that protected cash generation.
The rating agency projects adjusted EBITDA of approximately US$4.3 billion in 2026 and free operating cash flow of about US$1.3 billion this year. LATAM will add around 69 new aircraft from 2025 to 2028, which could increase debt by US$3.5 billion. This upgrade caps a long recovery for LATAM, which filed for bankruptcy in 2020. The rating on LATAM's secured notes due in 2030 and 2031 remains at BBB-, which is already investment-grade territory.
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