Moody’s downgrades O1 Properties

Moody’s Investors Service said it downgraded O1 Properties Ltd.’s corporate family rating to Caa3 from Caa2 and probability of default rating to C-PD/LD from Caa3-PD. Concurrently, Moody’s downgraded the senior unsecured ratings of instruments issued by O1 Properties Finance plc and O1 Properties Finance JSC, which are subsidiaries of O1, to C from Caa3. The outlook is changed to stable from negative.

“The downgrade of O1’s PDR to C-PD/LD reflects the company’s failure to make the interest payment on the $350 million global notes maturing in September 2021,which was due on March 27, 2020, and during the grace period of 10 business days which ended on April 14, 2020. O1 said that it is considering a number of options to resolve the non-payment, including a potential consent solicitation prior to the next interest payment date on September 27, 2020,” said Moody’s in a press release.

Moody’s also added to O1’s PDR an /LD (limited default) designation, indicating the company is in default on a limited number of its obligations. This reflects a missed interest payment extending beyond the applicable grace period is considered as a default under Moody’s definition, the agency said.

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