S&P ups KCIBT

S&P said it upgraded the rating for KCIBT Holdings LP to CCC from SD. Concurrently, S&P downgraded the company's first-lien debt facilities to CCC from CCC+ and upgraded the issue-level rating on its second-lien debt to CC from D. The agency revised the recovery ratings on the company's first and second-lien debt to 4 and 6, respectively.

S&P downgraded the company after it amended certain terms of its first- and second-lien loan pacts, which included a partial exchange of cash interest to be paid-in-kind on its second-lien term loan, which S&P said it viewed as a distressed restructuring.

“Our CCC rating reflects our expectation that liquidity will continue to deteriorate over the next 12 months, thereby presenting a risk of a shortfall or increasing the likelihood that the company will undertake a new distressed restructuring or debt exchange,” S&P said in a press release.

The outlook is negative.

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