Neovia Logistics L.P. has announced a below-par cash tender and exchange offer for its 10%/10.75% senior unsecured payment-in-kind (PIK) toggle notes due 2018. We consider this to be a distressed exchange (and thus the equivalent of a default) based on the transaction terms. Therefore, we are lowering our corporate credit rating on Neovia Logistics L.P. and Neovia Logistics Intermediate Holdings L.P. to 'CC' from 'CCC+' and are placing the ratings on CreditWatch with negative implications. At the same time, we are lowering our issue-level ratings on the company's PIK notes due 2018 to 'C' and are placing our ratings on the notes on CreditWatch with negative implications. The CreditWatch placement reflects that we will lower our corporate credit rating on
