Fitch downgrades Clisa

Fitch Ratings said it downgraded Clisa - Compania Latinoamericana de Infraestructura y Servicios SA's long-term local-currency and foreign-currency issuer default ratings to C from CCC. The agency also lowered the company's senior secured notes due in 2023 to C/RR4 from CCC/RR4.

These downgrades follow an announcement by Clisa that it is offering to exchange its 9˝% secured and unsecured notes due in 2023 for new step-up secured notes due in 2027, Fitch said. Because of the longer maturity, the pay-in-kind option and other factors, the agency said it considers the offer a distressed debt exchange.

“If the proposed tender offer is successfully completed, the IDR will be downgraded to Restricted Default (RD). Subsequently, Fitch will re-rate Clisa's IDRs to a level that is consistent with the company's post-exchange capital structure and risk profile, which would likely be within a low speculative rating range,” Fitch said in a press release.

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