Dutch Retailer Hema Downgraded To 'CC' And Debt Ratings Lowered On Proposed Debt Restructuring; Outlook Negative

On June 15, Hema B.V. announced the non-redemption of payment-in-kind (PIK) notes at the parent company and its plans for debt restructuring, including a debt-for-equity swap, debt exchange, and new debt issuance. We would likely view the targeted restructuring as a distressed exchange and a tantamount to a selective default at the issuer level. We are therefore lowering our rating on Hema to 'CC' from 'CCC', and our issue rating on its revolving credit facility (RCF), senior secured notes, and senior unsecured notes to 'CCC', 'CC' and 'C', respectively. The negative outlook indicates that we will lower our ratings on Hema and its debt to 'SD' (selective default) and 'D' (default) respectively, once all required approvals from debtholders and the

...June 18, 2020 - On June 15, Hema B.V. announced the non-redemption of payment-in-kind (PIK) notes at the parent company and its plans for debt restructuring, including a debt-for-equity swap, debt exchange, and new debt issuance. - We would likely view the targeted restructuring as a distressed exchange and a tantamount to a selective default at the issuer level. - We are therefore lowering our rating on Hema to '##' from '###', and our issue rating on its revolving credit facility (RCF), senior secured notes, and senior unsecured notes to '###', '##' and 'C', respectively. - The negative outlook indicates that we will lower our ratings on Hema and its debt to '##' (selective default) and 'D' (default) respectively, once all required approvals from debtholders and the court are received at the start of the restructuring. FRANKFURT (S&P Global Ratings) June 18, 2020--S&P Global Ratings today took the rating actions listed above. The downgrade stems from Hema's announcement of a debt-restructuring...

Ratings Action