S&P cuts Peach to SD

Standard & Poor's said it downgraded its ratings on Peach Holdings Inc. to SD from CC.

At the same time, the agency said it is lowering its issue rating on Peach's term loan to D from CC.

"Peach has repurchased a portion of its debt at a significant discount as an alternative to seeking debt covenant relief - we consider such a repurchase to be a distressed debt exchange. Upon completion of an exchange we view to be distressed, the agency said it lower its ratings on the affected issues to D, and the issuer credit rating is reduced to SD (selective default), assuming the issuer

continues to honor its other obligations," said S&P credit analyst John Bartko.

This is the case even though the investors, technically, may accept the offer voluntarily and no legal default occurs, the agency added.

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