S&P cuts Frigoglass

S&P said it downgraded Frigoglass SAIC’s issuer rating to SD, selective default, and its €260 million of notes to D, default.

The downgrade follows Frigoglass completing the restructuring of its €260 million of senior secured notes via a write-off of about €110 million of the original amounts and reinstatement of €150 million in senior secured second-lien notes due 2028. This action was part of the agreed-upon recapitalization of Frigoglass and the group of companies formerly controlled by it, S&P said.

The group’s new parent entity Frigo DebtCo plc also issued €75 million of first-lien senior secured notes due 2026 as well as the second-lien and first-lien notes in the capital structure.

“We view the completed restructuring as tantamount to default because creditors received less value than originally promised,” S&P said in a press release.

The agency said it plans to review the group’s ratings once it can analyze the company's business and financial potential under the amended debt terms.

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