S&P cuts Clisa

S&P said it lowered Clisa - Compania Latinoamericana de Infraestructura y Servicios SA’s global scale ratings to CC from CCC- and assigned a CCC rating to its planned secured notes due in 2027.

The downgrade follows Clisa's launch of an offer to holders of its senior secured and unsecured notes due 2023 for new senior secured notes due 2027, S&P said. The notes have a lower interest rate (stepping-up from 4½% to 10½%) than those for outstanding notes (at 9½%) and an interest PIK option until 2024.

“In our view, this implies that investors will receive less value than the promise of the original securities. Also, we view the offer as distressed because without considering the exchange, we assess there would be a possibility of a conventional default in the near term, reflecting Clisa's weak liquidity,” S&P said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.