On July 26, 2017, S&P Global Ratings lowered its corporate credit rating on Floworks International LLC to CC from CCC+ and its senior secured notes due 2019 to CC from CCC+. According to S&P Global, the downgrade follows Floworks International’s announcement of a proposed exchange offering for its existing $250 million 8.75% senior secured notes due 2019 ($220.9 million of principal outstanding). S&P views this as a distressed exchange, if completed. S&P expects to lower the corporate credit rating on Floworks to SD (selective default) and senior secured notes due 2019 to D (default) when the proposed transaction is complete, which they believe will occur over the next 90 days. Read more on distressed companies.