S&P cuts Monitronics to D

S&P said it lowering its issuer credit rating on Monitronics International Inc. to D from SD (selective default).

The agency also lowered the issue-level rating on the company's $1.1 billion term loan due 2022 to D from CC and affirmed the D issue-level rating on its $585 million 9 1/8% senior notes due 2020. The recovery ratings on both instruments are unchanged.

The downgrade follows Monitronics announcement that it will file a pre-packaged Chapter 11 petition under the U.S. Bankruptcy Code. The company also said that it had reached a restructuring support agreement (RSA) with most of its financial stakeholders (including the holders of about 91% of its secured term loan and 81% of its senior unsecured notes) on terms that would reduce its outstanding prepetition debt by approximately $885 million, S&P noted.

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