S&P lowers Tonon Bioenergia

Standard & Poor’s said it lowered the corporate credit rating on Tonon Bioenergia SA to D from CCC-, along with the rating on the company’s senior unsecured bonds to D from CC and secured bonds to D from CCC-.

The agency also said it revised the recovery rating on the company’s senior unsecured bond to 6 from 5, indicating a expected default recovery of less than 10%.

S&P also said it kept the 4 recovery rating on the company’s senior secured debt, which indicates 30% to 50% expected default recovery.

The D ratings reflect news that Tonon filed for judicial recovery in order to restructure its capital structure to preserve its ongoing business, the agency said.

The company will have 60 days to submit a restructuring plan to its creditors, which will have 120 additional days to discuss and approve the proposed plan, S&P said.

This is a general default on its debt payments, the agency said.

S&P said it will reassess the company’s capital structure and business profile once the restructuring is completed.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.