S&P slices La Financiere Atalian

S&P said it downgraded its ratings for La Financiere Atalian SAS and its senior unsecured debt to D from CC.

On Thursday, Atalian finished its debt restructuring to tackle its upcoming debt maturities, as announced on Jan. 19. The restructuring includes the extension of the maturity and new interest rate terms on its senior unsecured notes, alongside an upfront paydown and new security granted to the bondholders.

“In our view, the transaction falls short of the original promise to the lenders. Because we do not consider that lenders have received adequate compensation for the changes, we view the debt restructuring as a general default,” S&P said in a statement.

After reviewing the new capital structure, cash flow profile, liquidity position and business risk, S&P said it would review Atalian’s ratings.

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