Moody’s downgrades Stoneway

Moody's Investors Service said it downgraded Stoneway Capital Corp.’s senior secured rating to Ca from Caa3. The outlook is stable.

The downgrade follows Stoneway’s default on its debt outstanding, given a missed amortization payment due on March 2 and, the expectation of a lengthy debt restructuring process. The company failed to obtain consent from creditors to postpone its March debt maturity. “Our expectation is that losses for creditors will be at the range of 35 to 65 percent,” said Moody’s in a press release.

After failing to reach an agreement with bondholders, the company is working on a comprehensive recapitalization plan.

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