S&P downgrades KCIBT

S&P said it downgraded its ratings for KCIBT Holdings LP (CIBT) to SD from CCC, its senior secured first-lien credit facilities to D from CCC and its issue-level rating on its senior secured second-lien facility to D from CC.

“The downgrade follows the completion of CIBT's distressed credit agreement amendments with its lenders. The transaction extends the PIK and cash interest relief periods instituted under 2021 amendments by five quarters through June 30, 2024 for its secured credit facilities and also extends the loan maturities to 2026 from 2025.

“The amendments allow CIBT to partially pay-in-kind the interest (4.25% PIK/SOFR +1.0% cash pay) due on its first-lien term loan until June 30, 2024, and waive the interest payments due on its second-lien term loan until at least March 31, 2025,” S&P said in a statement.

S&P said it considers the transaction as the equivalent of default because the company’s creditors will get less than they were originally promised.

Additionally, the agency said it will reevaluate CIBT’s capital structure and liquidity.

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