...- In our view, there is increasing risk of Codere S.A. triggering a specific default event over the next six months, considering pressure on liquidity and covenants, its bonds are trading consistently well below par, and the potential for restructuring or refinancing actions over the medium term, particularly in connection with the group's 2021 term maturities. - A conventional default could arise from nonpayment of interest or a liquidity crisis, but we note the group paid its last May 2020 coupon within the grace period and understand it is in the advanced stages of arranging additional top-up liquidity facilities. - Specific defaults could also occur through debt restructuring or refinancing initiatives, and we believe that the company will likely breach its 4.1x net leverage covenant when tested on September 2020, unless a waiver is granted by its lenders. - We are therefore lowering to '###- from '###' our long-term issuer credit rating and issue ratings on Codere and its 500 million...
