The Fitch Ratings agency said Wednesday it lowered the rating of SoLocal Group C, against CC previously, just one notch of default, after the announcement by the group of a restructuring plan for its debt early August.
the outcome of the restructuring transaction “depends on the level of subscription to the capital increase and involve a deletion of one to two thirds of the current debt,” said Fitch in a statement. Or “any anticipation of debt forgiveness is consistent with a grade C + +, which includes in its definition the official announcement of a restructuring of distressed debt,” says the rating agency.
Fitch also believes that holders of SoLocal obligations should recover 31% to 50% of their stake.
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