S&P upgrades hibu

Standard & Poor's said it raised the long-term corporate credit rating on hibu plc to CC from SD (selective default).

The outlook is negative.

The upgrade follows news that hibu has reached an agreement with the lenders of its 2006 credit facilities to settle all of these lenders' claims, S&P said.

Under this settlement, the 2006 lenders will receive a payment in cash equal to 39% of the total amount outstanding to them, the agency said.

This payment, which was made on Dec. 11, will be the full and final settlement of all the lenders' claims under the 2006 facilities agreement, S&P said.

hibu is in the process of restructuring its balance sheet with the aim of reducing leverage in a mutually agreeable way with the main stakeholders, the agency said.

The group's decision not to pay upcoming interest and required debt amortization under its 2009 facility agreement, after failing to make a timely payment on the 2006 facility, is in the context of ongoing negotiations for the approval of a consensual restructuring agreement by stakeholders involved, S&P said.

The upcoming payments on the 2009 facility agreement are not due until February 2013, the agency added.

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