S&P cuts Mallinckrodt

S&P said it was lowering Mallinckrodt plc’s long-term issuer credit rating to CC, the senior secured rating to CCC, the senior unsecured rating to CC, and its subordinated unsecured rating to C and placing all ratings on CreditWatch with negative implications.

The downgrades follow the company’s offer to exchange its unsecured notes of a several maturities for a lesser principal of new 10% second-lien notes due 2025.

“Our ratings reflect our view that Mallinckrodt’s announced exchange offers and consent solicitations to unsecured lenders are distressed exchanges, based on our opinion that consenting lenders will receive less than the original promise of the debt at the close of the transaction,” said S&P in a press release.

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