S&P cuts, pulls URS Holdco ratings

S&P said it lowered URS Holdco Inc.’s issuer rating to SD, selective default, from CCC+, its first-lien term loan to D from CCC+ and then withdrew the ratings. The agency said it lacked information needed from the company to maintain its ratings.

“The downgrade reflects our view that the recent restructuring of URS' first-lien term loan was a selective default. We understand from URS management that the unrated ABL revolver was unaffected and remains in place. According to the company, the owner prior to the restructuring transaction, the Carlyle Group, conceded its equity ownership and first-lien term loan holders exchanged their claims for 100% of URS' common equity,” the agency said in a press release.

S&P said it considers the exchange distressed and equivalent to default because the lenders received less than originally promised.

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