U.S.–based Cooper-Standard Holdings Inc. completed a debt restructuring that it initially announced in November 2022. We view this transaction as distressed and tantamount to a default given that participants and holdouts of the unsecured note exchange will receive less than originally promised. We lowered our issuer credit rating on the company to 'SD' from 'CC'. We also lowered the issue-level rating on the unsecured notes to 'D' from 'C'. Our 'CCC' issue-level rating on the senior secured debt is unchanged. While the exchange offer alleviates near-term liquidity pressure through refinancing the 2023 term loan and reduces cash interest expense with a two year paid-in-kind (PIK) interest toggle, leverage remains unsustainably high. As such, we expect to raise our issuer credit
