S&P cuts Guitar Center

S&P said it downgraded Guitar Center Inc.’s issuer rating to D from CCC- and lowered all its debt ratings to D.

The downgrade follows Guitar Center reporting it entered into a restructuring support agreement. S&P said it expects the company to file for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

“We also note that the company missed its interest payments due Oct. 15, 2020, following the expiration of the 30-day grace period. Therefore, we consider the company’s debt instruments to be in default and anticipate a generalized default given its intention to file for bankruptcy before the end of the year,” S&P said in a press release.

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