On January 5, 2017, S&P Global Ratings lowered its corporate credit rating on AFGlobal Corporation to CCC- from CCC, its first-lien debt rating to CCC- from CCC and its second-lien debt rating to C from CC. “The downgrade follows Ameriforge’s announcement that it has hired advisors to evaluate potential strategic opportunities to enhance its liquidity and address its capital structure,” said S&P Global Ratings’ credit analyst David Lagasse. “We believe the company is likely to announce a restructuring that we would view as distressed within the next six months.” S&P Global considers an exchange offer as distressed, or tantamount to default, if they believe the offer implies that investors will receive less value than the promise of the original securities and if they view the offer as distressed rather than purely opportunistic. 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.