S&P trims Technicolor

S&P said it downgraded Technicolor SA to SD from CC after completing its previously announced debt-for-equity swap. The agency also lowered the ratings on its debt to D.

The agency also affirmed the CCC issue-level rating on Technicolor’s new debt, given its insulation from the debt-to-equity swap.

“Because the new €457 million of debt issued by Tech 6 and Technicolor USA, Inc. – two subsidiaries of Technicolor SA – was not part of the debt-to-equity swap, we affirmed our rating on it at CCC,” S&P said in a press release.

The positive CreditWatch on the new €457 million financing indicates S&P will raise the rating likely by more than one notch, once it raises the issuer credit rating from SD, the agency said.

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