S&P hikes MHP

S&P said it raised the long-term issuer and all its note ratings on MHP SE to CC from SD, selective default, and D, respectively.

“The upgrade reflects that MHP has successfully negotiated with bank lenders to extend waivers on principal payments on its roughly $150 million short-term bank borrowings at least until Aug. 31, 2023. We also understand that some lenders–accounting for about $75 million in total–had already granted waivers on principal amounts beyond August 2023, while others gave waivers but required MHP to repay part of the principal via monthly tranches,” the agency said in a press release.

However, S&P noted, “Without a very material improvement in both business and financial conditions in the next few months, we still think the group is unlikely to avoid a default or restructuring on its debt obligations. We do not think it currently has sufficient liquidity sources to service the next semi-annual coupons due in Autumn 2023 on the senior notes and the $500 million of senior unsecured notes due in May 2024.”

The outlook is negative.

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