S&P cuts KCA Deutag

S&P said it downgraded KCA Deutag Alpha Ltd. to SD from CCC+ after the company announced that it would use its 30-day grace period to delay paying the interest that was due Wednesday.

The agency said it sees the delay as part of an ongoing restructuring hastened by the effects of Covid-19 and the steep drop in oil prices.

S&P lowered the ratings on the affected notes, which mature in 2022 and 2023, to D from CCC+.

“We also lowered our issue level ratings on the unaffected rated instruments to CC from CCC+, indicating that they are currently highly vulnerable to nonpayment,” said S&P in a press release.

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