Research Update: Selecta Group B.V. Downgraded To 'CCC-' Due To Delayed Interest Payment; Ratings Placed On CreditWatch Negative

While Selecta Group B.V. has raised a new €50 million debt facility, it has extended its original 30-day grace period (expiring Feb. 1, 2025) with respect to an interest payment due on its €760 million first-lien notes. The stated period of the extension has not been disclosed. In our view, this raises uncertainty about it meeting this interest obligation and increases the likelihood of a distressed exchange. We therefore lowered our long-term corporate credit rating on Selecta to 'CCC-' from 'CCC+' and placed the ratings on CreditWatch with negative implications. We are also lowered all our issue ratings on the group's debt by two notches and placed them on CreditWatch negative. The CreditWatch negative placement reflects that we could downgrade

...- While Selecta Group B.V. has raised a new 50 million debt facility, it has extended its original 30-day grace period (expiring Feb. 1, 2025) with respect to an interest payment due on its 760 million first-lien notes. The stated period of the extension has not been disclosed. - In our view, this raises uncertainty about it meeting this interest obligation and increases the likelihood of a distressed exchange. - We therefore lowered our long-term corporate credit rating on Selecta to '###-' from '###+' and placed the ratings on CreditWatch with negative implications. We are also lowered all our issue ratings on the group's debt by two notches and placed them on CreditWatch negative. - The CreditWatch negative placement reflects that we could downgrade Selecta in the coming weeks at the end of original 30-day grace period, expiring on Feb. 1, 2025, if it does not meet the interest payment, if it announces that it does not intend to not pay the interest due in cash, or if it announces other...

Research Update