S&P cuts Selecta Group

S&P said it dropped the long-term issuer credit rating on Selecta Group BV to CCC- from B-; the ratings on the group's senior secured notes to CCC- from B- and the ratings on the super senior revolving credit facility to CCC+ from B+. The recovery ratings remain unchanged.

The agency also placed the ratings on CreditWatch with negative implications, indicating its view of a high probability Selecta could initiate a distressed debt exchange, which S&P said it would consider tantamount to a default.

“We expect a heightened risk of Selecta continuing to report monthly cash drain until at least the end of third-quarter 2020, which could leave the group with a liquidity deficit when meeting its October interest payment,” S&P said in a press release.

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