S&P cuts Central Security Group

S&P said it downgraded the ratings for Central Security Group Inc. and its first-lien term loan to CCC- from B- and cut the rating on its second-lien term loan to C from CCC.

“The risk of a distressed exchange has increased as the company has yet to make meaningful progress to improve its liquidity position. The downgrade and negative outlook reflects the increased risk of a payment default on Oct. 6, 2020 when the outstanding balance (about $26.9 million as of Sept. 30, 2019) is due,” said S&P in a press release.

The company has been engaged in conversations with its lenders over the past five months but has made modest progress. Moreover, the $346 million (outstanding) first-lien term loan due October 2021 has seen a sharp decline in trading prices which could prevent more comprehensive refinancing, the agency said.

© 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.