Fitch downgrades Interpipe

Fitch Ratings said it downgraded Interpipe Ltd.'s long-term issuer default rating to RD (restricted default) from CCC, short-term issuer default rating to D from C and senior unsecured rating to C from CCC. The recovery rating on the debt was changed to RR6 from RR4.

All ratings have been removed from Rating Watch negative.

The agency said the downgrades reflect the uncured payment default on some of Interpipe's bank debt facilities and the company's confirmation of its cross-default on its major bank debt facilities and $200 million eurobonds.

Fitch believes there is significant risk that Interpipe may experience payment default on its other debt facilities once the existing understandings with banks over payment deferrals lapse. The agency also believes that Interpipe's negotiations with its creditor group may be challenging due to the complex creditor relationship and difficult operating and credit environment.

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