S&P snips OutFront unsecured notes

S&P said it downgraded Outfront Media Inc.’s unsecured notes to B from B+ and revised the recovery rating to 5 from 4. The 5 recovery rating indicates modest (10%-30%; rounded estimate 20%) recovery in default.

Outfront plans to sell $400 million of senior secured notes and use the proceeds to off the company's $400 million unsecured notes due in 2025.

“While the current amount of total debt outstanding will remain the same, these actions increase the amount of secured debt outstanding in our hypothetical default scenario and as a result, lower recovery prospects for unsecured debtholders,” S&P said in a press release.

Outfront’s BB issue-level and 1 recovery ratings on its senior secured debt and B+ issuer rating are unchanged.

The outlook is stable.

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