S&P cuts IRSA

S&P said it lowered its rating for IRSA Inversiones y Representaciones SA to CC from CCC- after the company reported an exchange offer for its outstanding $181.5 million series I 10% senior unsecured notes due Nov. 14. IRSA plans to offer cash and new senior unsecured notes.

The downgrade reflects the view the exchange offer is a de facto restructuring, equivalent to a default, S&P said.

“This is despite the offer, including a down payment and a proposal to exchange the remaining portion at par and keeping the interest rate. In our opinion, there’s a possibility of a conventional default on IRSA’s November 2020 notes if the exchange offer isn’t accepted,” the agency said in a press release.

The outlook is negative.

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