S&P lowers Concordia Bus

Standard & Poor's said it lowered its long-term corporate credit rating on Concordia Bus AB to SD from CC, reflecting the group's failure to pay the interest on its €160 million subordinated notes and the continued absence of remediation concerning the missed payment.

At the same time, S&P lowered its rating on the €160 million notes to D from C and removed the rating from CreditWatch. The C rating on the secured €130 million notes issued by operating subsidiary Concordia Bus Nordic AB remains on CreditWatch with negative implications. Concordia provides a guarantee in favor of the notes.

S&P said Concordia is in negotiations with its stakeholders and is seeking approval for a debt-for-equity restructuring plan, which envisages the transfer of 96% of its share capital to the holders of its €160 million subordinated notes. The plan, which includes several covenant changes, will require the consent of senior bondholders.

The deadline for senior bondholder consent has been extended on several occasions but has not yet been agreed.

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