S&P downgrades Axtel

Standard & Poor's said it lowered its long-term corporate credit rating on Axtel SAB de CV to SD from CC.

At the same time, S&P lowered its issue-level rating on the company's senior unsecured notes to D from CC.

The downgrade follows the company's announcement that it accepted a 65% subpar exchange of its outstanding bonds due 2017 and 2019 for senior secured bonds, senior convertible secured bonds and cash, the agency said.

"Under our criteria, a debt exchange by a highly leveraged issuer is tantamount to a default," S&P credit analyst Marcela Duenas said in a news release.

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