S&P lowers Champion

Standard & Poor's said it lowered Champion Enterprises Inc.'s corporate credit rating to CC from CCC- and its $180 million 2.75% convertible debentures due 2037 to C with a recovery rating of 6 from CC.

The outlook is negative.

The agency said the rating action reflects the increased likelihood of a debt restructuring, which S&P would view as distressed and tantamount to default.

At the end of the second quarter, the company was not in compliance with the amended financial covenants contained in its bank credit facility, S&P said. In addition to seeking an amendment to the credit facility, Champion is exploring other alternatives, which could include a debt restructuring.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.