S&P cuts Southcross Holdings, debt to CC

Standard & Poor's said it lowered its corporate credit and senior secured debt ratings on Southcross Holdings Borrower LP to CC from CCC-.

The outlook is negative.

The recovery rating on the senior secured debt remains 4, indicating an expectation of average (30% to 50%; lower half of the range) recovery in the event of a default.

"The downgrade follows Holdings' announcement that it has agreed in principal with its owners, majority of its lenders, and its preferred equity holders on the terms of a restructuring that would be implemented under Chapter 11 of the U.S. Bankruptcy Code," S&P credit analyst Mike Llanos said in a news release.

As such, the agency believes a bankruptcy filing or default is imminent.

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