S&P sinks AAC Holdings

S&P said it downgraded AAC Holdings Inc. to SD from CCC after the company missed a $3.4 million debt amortization payment that was due Sept. 30. The agency also dropped the rating on AAC’s senior secured debt to D from CCC.

AAC entered a forbearance pact with its senior secured lenders that expires March 31. The lenders also provided an added $5 million in liquidity.

“We believe AAC may need to monetize its real estate portfolio to make the payments on its loans. However, there are significant uncertainties regarding the timing and magnitude of this payment,” said S&P in a press release.

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