Fitch cuts Hovnanian to C

Fitch Ratings said it downgraded Hovnanian Enterprises, Inc.'s issuer default rating to C from CCC following the company's announcement that it offered to exchange any and all of its existing 10% senior secured notes due 2022 and 10˝% senior secured notes due 2024 for new 3% senior secured notes due 2047.

Fitch said it views this transaction as a distressed debt exchange (DDE). Per the agency’s criteria, it would downgrade the issuer default rating to restricted default (RD) upon the completion of the exchange.

The issuer default rating may be subsequently upgraded reflecting the post-DDE credit profile.

The company's senior secured notes due 2020 and 2021, secured term loan, unsecured term loan and unsecured notes are not affected by the exchange.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.