S&P cuts Future Retail notes

S&P said it lowered Future Retail Ltd.’s $500 million senior secured notes to CC from CCC-. The issuer credit rating remains SD.

“We view a default by Future Retail Ltd. on its senior secured notes as a virtual certainty following the termination of its proposed asset sale to Reliance Retail Ventures Ltd. (RRVL),” S&P said in a press release.

The next coupon payment is due July 22 and if the company fails to make the payment, repayment could be accelerated and lead to bankruptcy proceedings, S&P warned.

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