S&P cuts Clisa

S&P said it downgraded Clisa–Compania Latinoamericana de Infraestructura y Servicios SA’s global scale issuer credit rating to SD from CC. The agency also lowered the global scale issue-level rating on Clisa to D from CC but affirmed the CCC issue-level rating on Clisa's planned secured notes with final maturity in 2027.

The downgrade follows Clisa reporting that 97% of the bondholders of its 2023 senior secured and unsecured notes accepted to exchange them for new senior secured notes due 2027, the agency said.

The new notes have a lower interest rate, stepping up to 10˝% from 4˝%, than that on the outstanding notes (9˝%) and an interest pay-in-kind (PIK) option until 2024.

“In our view, this implies that investors will receive less value than the promise of the original securities. Therefore, we consider the offer as a tantamount to a default,” S&P said in a press release.

The agency said it plans to reevaluate the issuer rating after considering the Clisa’s liquidity after the restructuring.

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