S&P cuts Bahia De Las Isletas

S&P said it lowered its ratings on Bahia De Las Isletas SL and its core subsidiary Naviera Armas SA, on whose level the senior secured notes were issued, to SD from B-. Concurrently, the agency downgraded the ratings on its senior secured notes due 2023 to D and on the senior secured notes due 2024 to CC, maintaining the recovery rating at 3.

Bahia missed the Oct. 31 coupon payment on its senior secured notes due 2023.

“We do not expect the company will make this payment during a 30-day grace period despite sufficient liquidity sources, as per our estimates. Bahia is in discussions with noteholders to evaluate alternatives in restructuring its capital structure, including the senior secured notes. Therefore, we view it unlikely that Bahia will make the upcoming Nov. 17 coupon payment on its 2024 senior secured notes,” S&P said in a press release.

It’s the agency’s understanding, Bahia is current on its other debt obligations, S&P said.

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