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S&P lowers CGG loan recovery to 3
Standard & Poor's said it revised to 3 from 2 its recovery ratings on the $1.3 billion senior secured facilities of Compagnie Générale de Géophysique (CGG, BB-/Watch negative), following the $200 million increase in the term loan B facility to $1 billion.
As a result of the higher level of secured debt, the share of recovery is expected to be 50%-80% of principal for senior secured lenders in the event of a payment default, still viewed as meaningful, but below the initial 80%-100% estimate, the agency said.
S&P added that the rating on the $1.3 billion senior secured facilities is BB-/Watch negative, the same as the corporate credit rating, noting that the CreditWatch status reflects the pending merger between CGG and Veritas DGC Inc. (BB/Watch negative), expected to close on Jan. 12.
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