On July 15, 2016, S&P Global Ratings lowered all of its ratings on Transtar Holding Company, including its CCC+ corporate credit rating to D. “Transtar missed the last interest payment on its term loan and we expect that it will enter into a comprehensive debt restructuring support agreement, which may involve capital infusions from its existing lenders and sponsors, following the recent expiration of its forbearance agreement,” said S&P Global credit analyst Nishit Madlani.
On July 15, 2016, Moody’s Investors Service downgraded Transtar Holding Company’s probability of default rating to D-PD to reflect interest payments defaults on its first and second lien bank debt. Concurrently, Moody’s downgraded the Company’s corporate family rating to Ca from B3, the ratings on the first lien revolver and term loan to Caa3 from B2 and the rating on the second lien term loan rating to C from Caa2. According to Moody’s, Transtar did not make the interest payments due June 30, 2016 on its first and second lien credit facilities. Moody’s deems a default to have occurred when an interest payment is not made by the end of a grace period. Read more on distressed companies.
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