S&P drops One Call

S&P said it lowered its long-term issuer credit rating on One Call Corp. to SD from CC following a distressed debt exchange for preferred and common equity but plans to boost the ratings shortly.

“At the same time, we lowered our debt ratings on all of the company’s debt issues that were exchanged for equity. We lowered our debt ratings to D from CCC on its first-lien term loan due 2022 and first-lien notes due 2024, and lowered our rating on One Call’s second-lien notes due 2024 to D from C. We will reassess the debt rating and recovery rating on these debt issues in the next several days,” said S&P in a press release.

S&P affirmed the CCC rating and 3 recovery rating on the company’s first-lien revolver and put the rating on CreditWatch with positive implications.

The agency also affirmed its C rating and 6 recovery rating on the company’s senior unsecured notes and put the rating on CreditWatch with positive implications.

S&P said it will assess the debt and recovery ratings on the revolver and notes in the next several days.

“We plan to raise our long-term issuer credit rating on One Call by multiple notches in the next several days to reflect conventional default risk. We also plan to raise our debt ratings on its various debt issues to reflect an updated recovery analysis,” said the agency.

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