Gol has received a ratings upgrade from Fitch Ratings on better financial metrics and a strong position in the Brazilian aviation market.

The US rating agency upgraded the Brazilian low-cost carrier from "B" to "B+" with a stable outlook on 9 July.

Fitch attributes the upgrade to "lower leverage, improved costs and more favorable industry dynamics in Brazil", adding that the airline's "operating results are highly correlated to the Brazilian economy".

"The rating outlook is stable and reflects Fitch's expectation that Gol will continue to manage its growing business in a conservative manner that will continue to support a decline in leverage and an improvement in liquidity," writes Fitch in the report.

Gol remains highly susceptible to foreign exchange volatility and oil prices, Fitch says.

Earlier this year, Moody's Investors Service raised its rating to "B1" in March on the same day the carrier launched a $345 million convertible bond deal.

Source: Cirium Dashboard