S&P cuts Alpha Holding

S&P said it lowered its issuer credit and senior unsecured debt ratings on Alpha Holding SA de CV to CC from CCC.

On Thursday, Alpha Holding announced the exercise of a 30-day grace period for the $15 million cash interest payment due Saturday, on its $300 million of senior secured notes due in December 2022.

“Alpha recently hired lawyers and advisory consultants to complete the analysis of the accounting errors and restatement to its financial statements. In addition, the company announced that an ad hoc group of holders of more than 50% in principal amount of the notes has formed and has appointed financial and legal advisors that are engaged in dialogue with the company. We don't have visibility on potential outcomes at present. However, we believe that default appears to be imminent due to the potential distressed debt restructuring or nonpayment,” S&P said in a press release.

The ratings remain on negative watch.

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