Latam, Avianca cut deeper Into junk by Fitch amid economic woes

Latam Airlines Group and Avianca Holdings were both downgraded further into junk territory by Fitch Ratings, which said that the economic slowdown in the region will be an obstacle for them to cut debt. Fitch cut Latam’s long-term foreign currency credit grade one step to B+, 4 levels below investment grade. The outlook for the carrier was also revised to negative from stable, the rating company said. Avianca was lowered 2 steps to B and the outlook was kept at negative, according to a separate report. Latin America’s economy is forecast to shrink 1% in 2016 after contracting 0.6% in 2015, according to economists surveyed by Bloomberg, led mainly by Brazil, which is going through its deepest recession in a century at the same time president Dilma Rousseff tries to stave off an impeachment process amid a corruption scandal. <br/>