S&P cuts SR Telecom to D

Standard & Poor's said it lowered its corporate credit rating and senior unsecured debt ratings on SR Telecom Inc. to D from CC following the missed principal and interest payments on the company's C$71 million 8.15% debentures that were due April 22.

At the same time, the ratings were removed from CreditWatch, where they were placed Jan. 20.

Irrespective of whether SR Telecom is successful in its efforts to recapitalize the company, a payment default has occurred, S&P said. Although SR Telecom has reached an agreement in principle to exchange the debentures for a combination of new convertible secured debentures and common shares, the recapitalization is subject to final documentation and a number of conditions, including a restructuring of debt at Chilean subsidiary CTR, S&P said.

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