Avianca Bonds Fall to Distressed Levels After S&P Warning

Ground crew members unload luggage from an Avianca Holdings SA passenger airplane.

Photographer: Nicolo Filippo Rosso/Bloomberg
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Avianca’s dollar bonds are trading at distressed levels following a spate of bad news for Colombia’s biggest airline.

Avianca Holdings SA $550 million of dollar bonds due in May 2020 plunged this week, sending the yield to 18.6%, from 9.7% at the start of the month. The shares also fell to a record low this week, making them both the worst-performing Colombian stock and the worst-performing Latin American airline this year.