S&P drops Durango to D

Standard & Poor's said it lowered its ratings on Corporación Durango SAB de CV, including the corporate credit rating, to D from CC, following Codusa's failure to make its Oct. 6 payment on its $520 million 10.5% senior unsecured notes due 2017 as a result of its extremely low liquidity.

The recovery rating on the notes is 4, the agency said.

The company also announced that it has filed for "Concurso Mercantil," a Mexican bankruptcy proceeding equivalent to Chapter 11 in the U.S., and an auxiliary procedure in the U.S. CODUSA will restructure its total outstanding debt of about $1.52 billion, including its public debt and the debt of its subsidiaries, S&P noted.

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