S&P: PDG on negative watch

Standard & Poor's said its CCC- global scale corporate credit and brCCC- ratings national scale corporate credit and issue-level ratings on PDG Realty SA Empreendimentos e Participacoes remain on CreditWatch negative.

The CreditWatch negative listing still reflects PDG’s announcement it had started a process to restructure its corporate debt.

S&P said the company is under a standstill agreement with most of its creditors and it would offer a compensation in reward for missing the payments.

The potential compensation is the main reason why S&P said it hasn't downgraded the company to SD so far. The ratings will remain in CreditWatch negative until S&P has more details on the nature of the compensation and the terms of the debt restructuring, so it can determine whether it is of a distressed nature or not.

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