S&P upgrades Azul S.A. to B-from D, outlook stable

S&P upgrades Azul S.A. to B-from D, outlook stable

S&P Upgrades Brazilian Airline Azul S.A. to ‘B-’ from ‘D,’ Outlook Stable

On February 25, 2026, S&P Global Ratings upgraded Brazilian airline Azul S.A.'s corporate credit rating to 'B-' from 'D,' with a stable outlook. The 'D' rating, which signified default, has been revised following the airline's restructuring efforts and improved financial positioning according to S&P's regulatory filing. This upgrade reflects S&P's assessment of Azul's progress in addressing liquidity constraints and its capacity to meet near-term obligations.

The adjustment aligns with recent developments, including Azul's proposed USD 1.2 billion exit financing plan, which aims to resolve outstanding debt and restructure its balance sheet as reported by Fitch Ratings. Fitch Ratings also assigned an expected 'B-(EXP)' rating to Azul's proposed debt instruments, signaling alignment among rating agencies on the airline's improved credit profile according to their corporate finance research. Notably, Fitch withdrew its previous 'D' ratings for Azul's debt and related obligations, consistent with the restructuring process as detailed in their analysis.

Azul's upgrade underscores its efforts to stabilize operations amid ongoing challenges in the post-pandemic aviation sector. The airline has prioritized cost reductions, fleet optimization, and securing long-term financing to restore investor confidence. While the 'B-' rating indicates a high credit risk, the stable outlook suggests S&P expects continued progress in executing Azul's financial strategy without material setbacks as stated in their regulatory filing.

Investors should note that the airline's credit metrics remain sensitive to macroeconomic conditions, fuel prices, and competitive pressures in Brazil's aviation market. The successful completion of its exit financing and adherence to restructuring timelines will be critical to sustaining the improved rating.

(https://www.spglobal.com/ratings/pt/regulatory/article/-/view/type/HTML/id/3020939): S&P Global Ratings' regulatory filing (February 25, 2026).
(https://www.fitchratings.com/research/corporate-finance/fitch-assigns-expected-b-exp-to-azul-proposed-usd1-2-b-exit-notes-withdraws-d-ratings-28-01-2026): Fitch Ratings' research on Azul's proposed debt (January 28, 2026).

This article is based on publicly available ratings reports and does not constitute investment advice.