S&P drops Prisa to SD

S&P said it downgraded its rating on Promotora de Informaciones SA (Prisa) to SD (selective default) from CC.

The downgrade follows Prisa and its debtholders agreeing to restructure the company’s debt, S&P said.

“We view this transaction as distressed in line with our criteria because prior to this Prisa's capital structure was unsustainable and, absent the proposed refinancing, the group would have had likely breached its financial covenants at Sept. 30, 2023. We think the refinancing results in investors receiving less than initially promised in the original loans contract because the overall interest on the new debt, including the cash and payment-in-kind (PIK) components, will be lower.

The agency said it plans to review its Prisa ratings.

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