We understand that Spain-based gaming company Codere S.A. has missed interest payments on its $300 million senior notes maturing 2019, which were due on Aug. 15, 2013. Under our criteria, if payment of principal or interest is delayed for more than five business days after the scheduled due date, this is tantamount to a default. We do not think Codere will make the payments within this period because we understand it is seeking to negotiate renewal of the notes and is evaluating various strategic alternatives for its capital structure. We are therefore lowering our corporate credit rating on Codere to 'SD' (selective default) from 'CC', and our rating on the notes to 'D' (default) from 'CC'. FRANKFURT (Standard&Poor's)
