Neovia Logistics L.P. recently completed an exchange for its senior unsecured payment-in-kind (PIK) toggle notes that we viewed as a distressed exchange under our criteria, and accordingly, we lowered our corporate credit rating on the company to 'SD' (selective default). Following the completion of this exchange--which has pushed out the company's debt maturities--we now expect that Neovia will be able to meet its short-term obligations. Nonetheless, we still view the company's capital structure as unsustainable over the long term. Therefore, we are upgrading Neovia Logistics L.P. and Neovia Logistics Intermediate Holdings L.P. to 'CCC+' from 'SD'. At the same time, we are assigning our 'CCC-' issue-level rating and '6' recovery rating to the company's newly issued PIK notes, which mature
