Fitch downgrades Codere to C

Fitch Ratings said it downgraded Codere SA's issuer default rating to C from CC.

Fitch also downgraded Codere Finance 2 (Luxembourg) SA's €250 million super senior notes to CC/RR3 from CCC-/RR3 and senior notes, which comprise a €500 million and a $300 million tranche, to C/RR4 from CC/RR4.

“The downgrade reflects Codere's decision to defer the interest payment due 31 March on the super senior notes (SSN), which constitutes conditions indicative of a C rating under Fitch's Rating definitions,” Fitch said in a news release.

“Codere is pursuing its negotiations with bondholders to find an agreement on a sustainable capital structure. Fitch views that a restructuring, if agreed upon, is likely to qualify as a distressed debt exchange according to its criteria.”

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