On June 12, 2017, S&P Global Ratings lowered its long-term corporate credit rating on MIE Holdings Corporation to CC from CCC and its senior unsecured notes rating to CC from CCC. According to S&P Global, the ratings were lowered following MIE’s announcement of a cash tender offer for its senior unsecured notes due 2018 and 2019. S&P views the offer as a distressed exchange tantamount to an immediate default on conclusion because the offer is at a significant discount to the par value of the outstanding notes.
On June 15, 2017, Fitch Ratings downgraded MIE Holdings Corporation’s Issuer Default Rating to C from CCC and its 2018 bonds to CC from CCC. According to Fitch, the rating actions follow MIE’s cash tender offer for any or all of its 2018 bonds and a partial tender offer for its 2019 bonds, as well as the Company’s proposed acquisition of upstream oil and gas assets in Canada for CAD722 million. Further, the downgrades of the Long-Term IDR and rating on the 2018 bonds are driven by MIE’s tender offer for its 2018 bonds, which Fitch considers to be a distressed debt exchange (DDE) under Fitch’s criteria. Read more on distressed companies.