S&P lowers Community Choice to D

S&P said it lowered its issuer credit rating on Community Choice Financial Inc. (CCFI) to D from CC.

At the same time, the agency also lowered its issue-level ratings on the company's senior secured notes to D from CC and on the company's first-lien senior secured loan to D from CCC.

The rating action follows CCFI's decision to defer a $13.72 million Nov. 1 interest payment on its senior secured notes and enter into a 30-day grace period. The missed payments were on the company's outstanding $247 million senior secured notes due May 2019 and $13 million senior secured notes due May 2020.

Any default on the senior secured notes would likely trigger a cross default provision on CCFI's $42 million first-lien secured revolver.

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