Fitch downgrades Signa Development

Fitch Ratings said it downgraded Signa Development Selection AG's long-term issuer default rating to D from C following the company's filing for insolvency proceeding to the Austrian court on Dec. 29. The agency withdrew the company’s CCC+ senior unsecured rating on Dec. 12.

On Dec. 20, Signa Development Finance SCS, the finance vehicle that sold Signa Development's €300 million unsecured bond, reported an event of default occurred under the bond documentation due to insolvency filings of certain Signa Development subsidiaries.

“The company plans to continue operations and repay its debt according to its presented restructuring plan. Under the Austrian law such a plan requires a minimum 30% of the insolvent entity's debt to be repaid within two years. The plan is scheduled for approval at its creditors' meeting in March 2024,” Fitch said in a press release.

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