S&P cuts Haya

S&P said it downgraded Haya Real Estate SAU to SD from CC and the senior secured notes to D from CC. The 4 recovery rating (30%) remains unchanged.

The downgrade follows the repurchase of notes below par through a tender, S&P said.

“We understand that it used €43 million of cash proceeds to repurchase €51 million of notes. Both the fixed-rate loan and the floating-rates loans were repurchased at 85% and 84.875% of the original price, respectively. As a result, the noteholders received less than the original promise, and we, therefore, view the repurchase as tantamount to default. Our senior secured notes are lowered to D as a result,” S&P said in a press release.

S&P also removed the ratings from CreditWatch with negative implications, where it placed them on Nov. 17.

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