S&P cuts Impsa, WPE International to CCC-

Standard & Poor's said it lowered its ratings on Industrias Metalurgicas Pescarmona SAIC y F (Impsa) and WPE International Cooperatief UA to CCC- from CCC+, and kept them on CreditWatch with negative implications where they were placed on June 18, 2014.

On June 25, Impsa announced that it was unable to pay the coupon and principal payment on its local bonds series VIII and IX due June 26, 2014 for an aggregate amount of ARS 59 million.

The agency doesn’t view the nonpayment as a default at this point, given that the notes' indenture gives the company 30 days to remedy the non-payment of interest and, according to its criteria, the agency applies a grace period of five business days for payment of the principal amount that does not have an explicit grace period.

S&P said it believes the company will likely make payment within the next five business days, as soon as the company resolves certain administrative procedures and receives the funds from one of its projects.

"Nevertheless, we believe the postponement reflects the company's increased vulnerability to non-payment amid weak liquidity and financial flexibility given that, as of the coupon due date, the company did not have an alternative funding source to comply with the payment," S&P credit analyst Cecilia Fullone said in a news release.

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