S&P cuts Codere

S&P said it downgraded Codere SA to SD from CC and the rating on its €250 million super senior notes due 2023, following the missed interest payment, to D from CCC-.

“The downgrade follows Codere's announcement that it has elected to defer the €13.4 million coupon payment on the currently outstanding €250 million super senior notes, beyond the stated 30-days grace period. In addition, it follows the announced agreement with an ad hoc committee to reorganize Codere's capital structure,” S&P said in a press release.

The agency said it considers the missed payment a default even though bondholders consented. “Nevertheless, we expect Codere will meet its payment obligations on other classes of obligations such as local debt, in a timely manner.”

The agency affirmed its CC rating on the €500 million and $300 million senior secured notes. The notes’ recovery rating remains 4, but with lower recovery prospects than before, given the added debt raised at the super senior level.

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