S&P cuts Takko to SD

S&P said lowered Takko to SD from CCC+ and the rating on Takko Luxembourg 2 SCA’s €510 million of senior secured notes to D from CCC+.

Friday, the company said it suspended interest payments for an undetermined period, and missed a payment due on the senior secured notes.

“The company's decision was driven by its intention to bolster liquidity, and we expect it will engage in a wider debt renegotiation with noteholders to find a long-term solution for its capital structure. We understand from the company's press release that the interest will not be paid in the time commensurate with the grace period allowed under the documentation before an event of default occurs. We therefore view the non-payment as akin to a default on the instrument,” S&P said in a press release.

The agency said it believes Takko will continue payments on its other financial instruments including its revolving credit facility.

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