S&P drops Guacolda Energia to D

S&P said it lowered Guacolda Energia SpA’s issuer and issue ratings to D from CC following Tuesday’s announcement it completed its tender and exchange offer of its $274 million of outstanding notes due 2025.

The agency said it considered the transaction the equivalent of default.

This tender and exchange is Guacolda’s second for the year. It exchanged $168.3 million of its $274 million of outstanding notes for new 10% notes due in 2030. The tender offer and the concurrent exchange offer represent a total of $190.5 million.

“We will reevaluate the issuer credit and issue ratings upon the settlement of the transaction. In particular, we will take into account the company's new capital structure, and willingness and capacity to meet its financial obligations,” S&P said in a press release.

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