S&P downgrades Adler

S&P said it downgraded its ratings for Adler Group SA and its senior unsecured notes to CC from CCC. The agency also lowered its ratings on Adler’s subsidiary Adler Real Estate AG and its senior unsecured notes to CCC- from CCC.

Last month, Adler reported a lock-up agreement with its unsecured non-convertible bondholders to reorganize its debt structure. The reorganization includes amending certain terms and covenants, the extension of Adler's 2024 bond maturity, and raising up to €937.5 million of senior secured debt to stabilize the capital structure and improve the group's liquidity, the agency said.

S&P considers the reorganization equivalent to a default. “We see the proposed transaction as offering the lenders less than the original promise of the securities,” the agency said in a press release.

The outlook is negative.

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