Credito Real was downgraded to CCC- and CC from B- each by S&P and Fitch. The downgrade by both rating agencies is on account of concerns regarding repayment of its upcoming maturity of CHF 170mn ($180mn) 2.875% bond due February 9. The company is still trying to negotiate securing a loan and seek additional financing strategies which have not materialized yet. This combined with its persistent inability to complete some of the plans to obtain funds have further increased refinancing risks. S&P and Fitch said they would downgrade Credito Real to SD and RWN respectively if the non-bank lender fails to repay the swiss franc denominated bond.
Credito Real’s CHF 2.875% 2022s rose 7% on Friday to trade at par over rumors of the company securing a loan.