S&P cuts Midwest Vanadium, notes to D

Standard & Poor's said it lowered its corporate credit rating on Midwest Vanadium Pty Ltd. (MVPL) and the issue rating on its $335 million senior secured notes due 2018 to D from CCC-.

The agency also lowered the recovery rating on the notes to 5 from 4.

At the same time, the ratings were removed from CreditWatch with negative implications, where they were placed on Feb. 11.

"The downgrades follow MVPL parent Atlantic Ltd.'s announcement that MVPL did not pay its interest obligation of about $19 million due on Feb. 15, 2014, and that a subsequent standstill arrangement had been agreed with its senior secured noteholders," S&P credit analyst May Zhong said in a news release.

"Once executed, the standstill arrangement will suspend the enforcement rights of the senior secured noteholders in relation to MVPL's defaults under the note indenture until at least August 2014. Under our criteria, we consider a missed interest payment as a default when nonpayment has occurred and is not expected to be paid within a 30-day period from the scheduled payment date."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.