Fitch prunes Signa Development

Fitch Ratings said it downgraded Signa Development Selection AG's long-term issuer default rating to CCC- from CCC and placed it on rating watch negative. The agency also lowered Signa Development's senior unsecured rating to CCC+ from B- and placed it on RWN. The senior unsecured recovery rating is RR2.

“The downgrades reflect Signa Development's weak ringfencing measures, which should have protected its bondholders from wider Signa group difficulties. Signa Prime Selection (Signa Prime) is reportedly in some form of standstills with various suppliers, some development projects have been halted, and its liquidity is constrained. We believe this may lead to contagion effects on other Signa entities including Signa Development,” Fitch said in a statement.

Additionally, the agency noted Signa Development and Signa Prime have hired the same legal and financial advisers.

© 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.