S&P drops Kaltex to D

S&P said it downgraded Grupo Kaltex SA de CV and its issue-level ratings to D from CCC- and removed them from CreditWatch with negative implications.

The downgrade follows Kaltex's failure to make principal payment on its $218 million of outstanding senior secured notes on Monday, although the company fully paid interest due that day.

“We view this as a general default, given that the notes are the only financial obligation outstanding on Kaltex's balance sheet,” S&P said in a press release.

Additionally, Kaltex reported it hired investment bank, Benedetto, Gartland & Co., Inc., to help in the debt restructuring process, including discussions with an ad-hoc noteholders group, and third-party banks and other capital providers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.