S&P cuts Signa Development

S&P said it downgraded Signa Development Selection AG to D from CC.

“The downgrade follows our belief that a significant subsidiary of SDS has filed for insolvency, and therefore an event of default occurred under its bond documentation. We understand SDS has informed the bondholders' representative that one of its subsidiaries, which is defined as significant under the bond terms (representing more than 10% of revenue or assets) filed for insolvency or bankruptcy. This led to an event of default under the bond documentation,” the agency said in a press release.

S&P said it plans to reassess SDS and its new capital structure when it emerges from bankruptcy.

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