Moody's cuts Codere PDR

Moody's Investors Service said it downgraded Codere SA's probability of default rating to Ca-PD from Caa3-PD.

Concurrently, Moody's affirmed Codere's Caa3 corporate family rating and the Ca ratings on Codere Finance (Luxembourg) SA's €760 million worth of 8¼% senior notes due 2015 and $300 million worth of 9¼% senior notes due 2019.

At the same time, Moody's changed the LGD rate on the senior notes to LGD3 (46%) from LGD4 (63%).

The outlook remains negative.

"We have downgraded Codere's PDR to Ca-PD following the company's decision not to pay the coupon on the euro notes that was due on 15 June 2013, and instead, use the 30 day grace period available under the terms and conditions of the notes," Ivan Palacios, Moody's Vice President, Senior Credit Officer and lead analyst for Codere, said in a news release.

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