LATAM Credit Rating Rises to BB+ as S&P Rewards Its Fuel-Shock Resilience
S&P Global Ratings upgraded LATAM Airlines Group's credit rating from BB to BB+ on 21 September 2026, citing strong first-half 2026 performance despite high fuel prices. LATAM's revenue rose 27.6% in Q2 2026, with adjusted EBITDA guidance raised to $4.1-4.4 billion. S&P expects $4.3 billion in adjusted EBITDA for 2026 and projects continued growth.
How this was made
The 30-second read
Why it matters
The BB+ rating places LATAM one notch below investment grade, likely reducing financing costs and supporting its aggressive fleet expansion plan.
Market read
Rating upgrade is a material corporate event that can affect LATAM's bond yields and equity valuation.
What to watch
Potential debt increase from fleet expansion could offset rating benefits if cash flow deteriorates.
Background
LATAM Airlines Group, the largest airline in South America, emerged from Chapter 11 in 2022 and returned to the NYSE in 2024 under ticker LTM.
Ticker impact
S&P raised LATAM Airlines Group's issuer rating from BB to BB+, indicating improved credit quality.
Bond yields likely tighten; equity may see modest upside.
Credit rating upgrades are historically followed by tighter spreads for the issuer.
Market effects
Improves outlook for South American airline sector and may lift peers' credit perception.
Positive signal for Chilean and broader Latin American financial markets.
Minor; primarily affects LATAM bonds and regional equities.
Counterpoint
If fuel price volatility persists, the rating could be short‑lived and bond spreads may widen.
Key entities
- Rating AgencyS&P Global Ratings
Provided the BB+ rating upgrade.
- CompanyLATAM Airlines Group
Subject of the rating upgrade.
