S&P downgrades CSM Bakery

S&P said it downgraded CSM Bakery Solutions LLC to SD from CCC after the company extended its asset-based lending facility’s maturity to June 4.

The facility’s previous springing maturity date was May 4. “The springing maturity was likely to be in effect because the company has not completed a refinancing of its first-lien term loan due July 2020,” S&P said in a press release.

“We treat the amendment as tantamount to a selective default because in our view, CSM is distressed and the amendment is a modification to the credit agreement whereby lenders are receiving less than promised without material compensation,” the agency said.

S&P also downgraded CSM’s first-lien term loan to CC from CCC+ and its second-lien loan to C from CC. The 2 recovery rating on the first-lien loan and the 6 rating on the second-lien loan are unchanged.

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