S&P downgrades Getty Images

Standard & Poor’s said it lowered the corporate credit rating on Getty Images Inc. to CC from CCC+.

The agency also said it lowered the rating on the company’s senior unsecured notes to CC from CCC-. The 6 recovery rating is unchanged, indicating 0 to 10% expected default recovery.

S&P also said it affirmed the CCC+ rating on the company’s first-lien senior secured credit facilities. The 3 recovery rating is unchanged, indicating 50% to 70% expected default recovery.

The outlook is negative.

The downgrades follow news that the company plans to offer to exchange up to $234 million of its existing 7% senior unsecured notes due 2020 for $150 million in new 10½% secured first-lien notes due 2020, S&P said.

The existing senior noteholders will receive about 64 cents on the dollar. The agency said it views the exchange as tantamount to a default because the debtholders are not receiving the originally promised value.

Upon completion of the exchange offer, S&P said it will lower the corporate credit rating to SD (selective default) and the rating on the existing senior unsecured notes to D (default).

In conjunction with the exchange offer, Getty said it is planning to issue an incremental $100 million 10½ senior secured notes due 2020, the agency said.

The company will use the proceeds from the incremental offering to integrate and upgrade existing technology platforms, increase marketing spending and for general corporate purposes, S&P said.

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