S&P raises Kernel

S&P said it raised its ratings for Kernel Holding SA to CC from SD, selective default, and affirmed the CC ratings on its notes.

“Kernel Holding's bank lenders have agreed to postpone principal payments on its $824 million short-term bank borrowings to June 30, 2023. This means Kernel is no longer in default under our criteria and, with about $700 million in cash, is able to support its short-term business and financial needs,” S&P said in a press release.

“We understand the company will start new negotiations with banks in May 2023 for a further extension of the debt principal payment to preserve liquidity to finance working capital needs. We also believe Kernel currently has enough cash on the balance sheet and is willing to service the $19.875 million coupon payment due in April 2023 on its outstanding senior unsecured notes,” the agency added.

The outlook is negative.

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