S&P downgrades Emeco, notes

S&P said it lowered its long-term corporate credit rating on Emeco Holdings Ltd. to SD from CC and the rating on its senior secured notes to D from CC.

S&P said the downgrades followed Emeco's implementation of a creditors' scheme of arrangement that will swap the existing $282.7 million of senior secured notes for 34% of ordinary shares in a newly merged group comprising Emeco, Orionstone, and Andy's Earthmovers, and new senior secured notes.

"We believe this transaction has resulted in the noteholders receiving less than the original promise of the securities," S&P credit analyst Sam Heffernan said in a news release.

"In the absence of this offer, there was a realistic possibility of a conventional default on the second-lien notes."

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