On February 1, 2017, S&P Global Ratings lowered its corporate credit rating on Pinnacle Operating Corporation to CC from CCC. “Pinnacle has announced a proposed exchange offering in which its second-lien notes due in 2020 would be exchanged partially for new 1.5-lien notes due in 2023 and partially for preferred stock,” said S&P Global Ratings credit analyst Allison Schroeder. “We view the tender for the 2020 notes as distressed because participating note holders will receive less than the original promise,” she added. According to S&P Global, the negative outlook reflects the likelihood that they will lower the corporate credit rating to SD at the close of the exchange. The Company’s first-lien term loan rating remain at CCC and its senior secured second-lien notes rating remains at CC. Read more on distressed companies.