S&P cuts Swissport

S&P said it lowered to D from SD its long-term issuer credit rating on Swissport Group Sarl and all its rated subsidiaries. S&P also lowered the issue ratings on the group’s junior debt instruments to D from C and removed them from CreditWatch with negative implications. The D rating on the group senior debt is unchanged.

“We have taken these rating actions following the completion of Swissport’s comprehensive debt restructuring. This involved a debt-for-equity swap of the group’s senior debt and extinguishment of the group’s certain other debt. We view Swissport’s debt restructuring as distressed, because investors received less than the promise of the original securities, and therefore tantamount to default,” S&P said in a press release.

Swissport Financing Sarl’s €250 million of 9% unsecured notes have been transferred to a new ownership structure. The stub notes (€36.5 million outstanding of 6¾% secured stub notes due December 2021 and €15.9 million outstanding of 9¾% unsecured stub notes due December 2022) issued by Swissport Investment SA were not carried over to the new ownership structure. There are no longer any operating assets or foreseeable cash flows to service the stub notes, S&P said.

“We subsequently withdrew all the ratings on Swissport at the company’s request,” S&P said.

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