S&P upgrades Cognor

Standard & Poor’s said it raised the long-term corporate credit ratings on Cognor SA to CCC from SD (selective default), along with its short-term corporate credit ratings to C from SD.

The agency also said it raised the rating on the senior secured notes due 2020 issued by Cognor International Finance plc to CCC from D, along with the rating on the €25 million exchangeable notes to CC from C.

The outlook is negative.

The upgrades follow the completion of Cognor’s tender offer on a portion of its senior secured notes, S&P said, and partial redemption of bonds at below-par before Dec. 31.

The ratings still consider the likelihood of a payment default due to the company’s vulnerable business risk profile and highly leveraged financial risk profile, the agency said.

Cognor’s liquidity is considered weak due to its small cash balance and depressed operating cash flows, S&P said.

The ratings also reflect the possibility that Cognor may pursue additional below-par bond buybacks should its liquidity profile allow for this, the agency added.

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