S&P ups Cognor, rates notes CCC+ & exchangeables CCC-

Standard & Poor's said it raised its long-term corporate credit rating on Cognor SA to CCC+ from SD (selective default).

The agency also raised the short-term rating on Cognor to C from SD.

The outlook is stable.

At the same time, S&P assigned its CCC+ issue rating to Cognor's €100 million senior secured notes due 2020 and its CCC- issue rating to its €25 million exchangeable notes due 2021.

The upgrade follows Cognor's completion of a sub-par exchange of its €118 million senior secured notes due February 2014 for new €100 million senior secured notes due 2020 and €25 million exchangeable notes due 2021. The exchange extended the maturity date of Cognor's debt and reduced its interest payments in the next three years.

Moreover, Cognor has the option of accumulating the interest on the senior secured notes in the next two years and the interest on the exchangeable notes over their life.

In S&P's view, this materially improves Cognor's financial flexibility and liquidity over the coming 12 months.

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