Moody’s cuts GCX to Ca

Moody's Investors Service said it cut GCX Ltd.’s corporate family rating to Ca from Caa1.

“The rating downgrade on GCX's corporate family rating to Ca from Caa1 follows the payment default on the company's $350 million 7% senior secured notes,” said Annalisa Di Chiara, a Moody's vice president and senior credit officer, in a news release.

The notes matured Aug. 1.

“Although the company announced the signing of a forbearance agreement with 87% of its bondholders on 31 July – one day in advance of the maturity of the notes – a missed scheduled payment of either interest or principal is considered a default under Moody's definitions,” said Di Chiara, who is also Moody's lead analyst for GCX.

The outlook remains negative, reflecting the uncertainty of the situation, Moody’s said.

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