S&P downgrades Iracore

S&P said it lowered the corporate credit rating on Iracore International Holdings Inc. to SD (selective default) from CCC-.

The agency also said it lowered the rating on the company's second-lien secured notes to D from CCC-. The recovery rating remains at 4, indicating 30% to 50% expected default recovery.

The ratings were then withdrawn at the issuer's request.

The downgrades follow news that Iracore closed a transaction that exchanges all of the company's outstanding senior secured notes for equity and provides the company with a new term loan, S&P said.

The transaction is considered a distressed exchange because at the close of the transaction, investors received less than what was promised on the original securities, the agency said.

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