S&P cuts Axtel SAB de CV

Standard & Poor's said it lowered its corporate credit rating and issue level ratings on Axtel SAB de CV to CC from CCC+. The outlook is negative.

The agency said the downgrade follows the company's announcement of an offer to exchange its current senior unsecured notes due in 2017 and 2019, totaling $765 million, for a combination of $356.5 million 7% senior secured notes due in 2020, Ps. 335.5 million 7% senior secured convertible dollar-index notes due in 2020 and cash of up to $114.8 million.

"According to our criteria, we view this as a distressed exchange and tantamount to a default," said S&P credit analyst Marcela Duenas in a news release.

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