Moody's adds LD to Hurtigruten rating

Moody's Investors Service said it appended a limited default designation to Hurtigruten Group AS' probability of default rating, changing it to Ca-PD/LD from Ca-PD. The agency will remove the LD designation from the company's PDR after three business days.

The rating action follows Hurtigruten’s recapitalization plan, Moody’s said. As part of the deal, Hurtigruten's pre-existing senior facilities totaling €940 million have been re-tranched and reinstated with €345 million at Hurtigruten's level, with a concurrent maturity extension to September 2027 from February 2026 and February 2027. The rest at Hurtigruten NewCo AS (Hurtigruten's immediate parent), with a concurrent maturity extension to 2029 from 2027 and substantial conversion of cash interests to pay in kind.

“Moody's considers the event as a distressed exchange, which is tantamount to a default under the rating agency's definition. Debt maturity extensions alongside conversion of cash interest to PIK entail an economic loss to Hurtigruten's lenders, corresponding to a failure to meet debt service obligations outlined in the original debt agreements,” the agency said in a press release.

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