On August 14, 2017, S&P Global Ratings lowered its issuer credit rating on FirstEnergy Solutions Corp. to CCC- from CCC, its secured debt rating to CCC+ from B- and its unsecured debt rating to CCC- from CCC. According to S&P Global, the rating action stems from the recent announcement by the Company that it was pursuing exchange discussions with its creditors. This announcement appears to potentially accelerate the timeframe to default, which S&P had previously believed would immediately precede 2018 maturities. An exchange that provides less than full compensation would be considered an event of default under S&Ps criteria. “It’s not clear, currently, how long it will take for these events to transpire, but, even absent an agreement with the creditors, we expect that the company will file for bankruptcy in advance of its 2018 maturities…” Read more on distressed companies.
About Kerry Mastroianni
Kerry Mastroianni, the editor of The Distressed Company Alert, has been researching distressed and bankrupt companies for over 18 years. As a 10-year employee of New Generation Research, she is also a data editor for Bankruptcy Week and the editor for our annual Bankruptcy Yearbook & Almanac. Prior to Kerry’s employment at NGR, she worked for eight years as a research analyst for KPMG’s corporate recovery practice.