Research Update: Office Properties Income Trust Downgraded To 'SD' From 'CC' Following Debt Exchange - S&P Global Ratings’ Credit Research

Research Update: Office Properties Income Trust Downgraded To 'SD' From 'CC' Following Debt Exchange

Research Update: Office Properties Income Trust Downgraded To 'SD' From 'CC' Following Debt Exchange - S&P Global Ratings’ Credit Research
Research Update: Office Properties Income Trust Downgraded To 'SD' From 'CC' Following Debt Exchange
Published Jun 21, 2024
4 pages (1587 words) — Published Jun 21, 2024
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Office Properties Income Trust (OPI) completed an exchange of an aggregate $865.2 million principal amount of its senior unsecured notes due 2025, 2026, 2027, and 2031, for $567.4 million of new senior secured notes due 2029. We view this transaction as distressed and tantamount to a default given that creditors received less than the full value they were originally promised. As a result, S&P Global Ratings lowered its issuer credit rating on OPI to 'SD' (selective default) and its issue-level rating on the company's 2025, 2026, 2027, and 2031 senior unsecured notes to 'D'. The company's existing senior unsecured notes due 2050 and senior secured notes due 2029 were not part of the exchange offer; therefore, our ratings on these

  
Brief Excerpt:

...Downgraded; Outlook Action To From Office Properties Income Trust Issuer Credit Rating ##/-- ##/Negative/-- Ratings Affirmed; Recovery Rating Unchanged Office Properties Income Trust Senior Secured B- Recovery Rating 1(90%)...

  
Report Type:

Research Update

Ticker
GOV
Issuer
Office Properties Income Trust
Sector
Global Issuers, Structured Finance
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Office Properties Income Trust Downgraded To 'SD' From 'CC' Following Debt Exchange" Jun 21, 2024. Alacra Store. May 12, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Office-Properties-Income-Trust-Downgraded-To-SD-From-CC-Following-Debt-Exchange-3201117>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Office Properties Income Trust Downgraded To 'SD' From 'CC' Following Debt Exchange Jun 21, 2024. New York, NY: Alacra Store. Retrieved May 12, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Office-Properties-Income-Trust-Downgraded-To-SD-From-CC-Following-Debt-Exchange-3201117>
  
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