S&P slices AFE

S&P said it lowered its ratings for AFE SA and its senior secured notes to CCC from B- and removed them from CreditWatch where they were placed with negative implications on April 18. The outlook is negative.

Additionally, S&P warned AFE might not be able to repay its €60 million revolving credit facility, maturing in December.

“The downgrade reflects AFE's increasing level of financial stress and weakening liquidity. The company has yet to refinance its €305 million of SSNs, which mature in August 2024. Although AFE has managed to extend its RCF maturity to the end of this year, we believe there is a high probability it will not be able to repay the facility at maturity unless management undertakes extraordinary measures such as assets sales, and absent a refinancing of the SSNs, its further extension is unlikely,” the agency said in a press release.

S&P warned the negative outlook indicates a possible downgrade of up to two notches within six months if it considers a distressed exchange or default on the revolver imminent.

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