S&P downgrades Modular Space

S&P said it lowered the corporate credit rating on Modular Space Corp. to SD (selective default) from CCC, along with the rating on its senior secured notes to D from CCC.

The agency also said it removed the ratings from CreditWatch, where they were placed with negative implications in August.

The downgrades follow a decision by Modular Space to defer its interest payment due Aug. 1 on the company's senior secured notes, S&P explained. The company did not cure the default within the 30-day grace period in the notes' indenture, the agency added.

The company is still in discussions with its noteholders, S&P added.

When the company announced the termination of it merger agreement with Algeco Scotsman Global Sarl in August, S&P said at that time, Modular Space could find it difficult to refinance its asset-based credit facility.

© 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.