CMG Media Corp. has completed a partial exchange of its senior secured term loan due 2026 to a new senior secured loan due 2029. It is also in process of completing an exchange of its senior unsecured notes due 2027 to new second-lien senior notes due 2029. We view the transactions as tantamount to a default because in our view, the company's lenders received less than they were originally promised without offsetting adequate compensation and, absent the transaction, we believed there was a realistic possibility of a conventional default. We therefore lowered our issuer credit rating on CMG to 'SD' from 'CC' and our issue-level rating on the company's senior secured term loan to 'D' from 'CC' and our issue-level
