Fitch slashes Solocal

Fitch Ratings said it lowered its ratings for Solocal Group SA to CC from CCC+ and its senior secured debt to CCC- from B- with an RR2 recovery rating.

The downgrade follows Solocal reporting it plans to defer the coupon payments due on Thursday and in September on its floating-rate notes, which mature in 2025, the agency said.

“We expect the company to enter into talks with bondholders to negotiate a waiver or a standstill agreement on payments due for the rest of 2023,” Fitch said in a statement.

Under its rating definitions, the agency said it plans to downgrade Solocal’s issuer rating to RD, or restricted default, upon the uncured expiry of the 30-day grace period.

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