S&P trims Stearns to D

S&P said it lowered its issuer credit rating and issue-level ratings on Stearns Holdings LLC to D from CCC+.

“The downgrade to default follows the company's agreement with Blackstone, which owns 70% of the company, to implement a financial restructuring plan, and its voluntary filing for reorganization under Chapter 11 of the U.S. Bankruptcy code,” the agency said in a news release.

“The Blackstone proposal is expected to wipe out $183 million of outstanding debt from the balance sheet, which dates back to 2013, in exchange for a discounted cash payment to bondholders.”

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