Research Update: Selecta Group B.V. Downgraded To 'SD' (Selective Default) Due To Missed Interest Payment

Selecta Group B.V. (Selecta) has missed an interest payment of about €30 million on its first-lien notes within its original grace period, which expired on Feb. 1, 2025. While Selecta has agreed with its lenders to extend the grace period, we view a missed interest payment within the initial grace period as tantamount to a default under our criteria. As a result, we lowered our long-term issuer credit rating on Selecta to 'SD' (selective default) from 'CCC-'. We also lowered our issue-level rating on its first-lien notes to 'D' (default) from 'CCC-'. We lowered our issue ratings on the super senior revolving credit facility (RCF) to 'CCC' from 'CCC+' and second-lien term notes to 'C' from 'CC'. We will reevaluate

...- Selecta Group B.V. (Selecta) has missed an interest payment of about 30 million on its first-lien notes within its original grace period, which expired on Feb. 1, 2025. - While Selecta has agreed with its lenders to extend the grace period, we view a missed interest payment within the initial grace period as tantamount to a default under our criteria. - As a result, we lowered our long-term issuer credit rating on Selecta to '##' (selective default) from '###-'. We also lowered our issue-level rating on its first-lien notes to 'D' (default) from '###-'. We lowered our issue ratings on the super senior revolving credit facility (RCF) to '###' from '###+' and second-lien term notes to 'C' from '##'. - We will reevaluate our ratings once we have more information on Selecta's refinancing plans, if the company announces further restructuring plans, or a distressed exchange on the remainder of its capital structure....

Research Update