S&P downgrades 21st Century

S&P said it lowered the corporate credit rating on 21st Century Oncology Holdings Inc. to SD (selective default) from CCC and removed the ratings from CreditWatch, where they were placed with negative implications in May.

The agency also said it lowered the rating on subsidiary 21st Century Oncology Inc.'s senior unsecured notes to D from CC and removed the rating from CreditWatch.

The recovery rating on the notes remains at 6, indicating 0 to 10% expected default recovery.

The downgrade follows news that 21st Century failed to make the Nov. 1 interest payment on the 11% senior unsecured notes due 2023, S&P said.

Given the view of the company's debt level as unsustainable and ongoing restructuring discussions, the agency said it does not expect a payment to be made within the grace period.

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