Safilo in selective default avendo ottenuto dai creditori bancari di non pagare una trance di un loan cd "amortizing", per la quale è stato accordato nuovo termine al 31 dicembre prossimo.
Safilo ha tuttavia manifestato verbalmente a S&P l'intenzione di voler continuare a tenere fede alle altre obbligazioni nei confronti dei creditori.
Non dovesse farcela, o dovesse essere costretta a ristrutturare il debito, il rating passerebbe a D.
Italy-Based Safilo SpA Downgraded To 'SD' (Selective Default) On Deferral Of Repayment Of Principal Debt
-- Italy-based eyewear manufacturer Safilo has agreed with senior creditors to defer the repayment of €19 million principal debt due June 20, 2009.
-- Under Standard & Poor's methodology, this deferral of the debt maturity is tantamount to a selective default.
-- Therefore we are lowering to 'SD' from 'CC' the long-term corporate credit rating on Safilo.
LONDON (Standard & Poor's) July 3, 2009--Standard & Poor's Ratings Services said today that it lowered to 'SD' (Selective Default) from 'CC' its long-term corporate credit rating on Italy-based eyewear manufacturer Safilo SpA. At the same time, we affirmed our 'C' issue rating on the €195 million 9.625% second-lien notes due 2013 issued by Safilo Capital International S.A. The recovery rating on the debt is unchanged at '5', indicating our expectation of modest (10%-30%) recovery in the event of a payment default.
The downgrade follows Safilo's announcement on July 2, 2009, that it has agreed with its senior lenders to defer the repayment of about €19 million of the unrated €129 amortizing facility A of its senior bank loan due December 2011. The initial payment fell due on June 30, 2009, and lenders have agreed to postpone the payment to Dec. 31, 2009. Lenders have also agreed a waiver on the maintenance covenant set for the aforementioned loan at the test date of June 30, 2009.
"Under Standard & Poor's methodology, we consider the extension of a debt maturity as tantamount to a restructuring below par by a distressed issuer, and therefore a default," said Standard & Poor's credit analyst Diego Festa.
Safilo has verbally confirmed that it remained current on the payment of all other financial obligations, therefore we view the extension of the maturity of Safilo's amortizing facility A as a selective default. Our default definitions include payment defaults on both rated and unrated financial obligations.
We will monitor Safilo's ongoing liquidity and service of its debt until the end of the waiver period (Dec. 31, 2009), at which date we will reassess Safilo's capital structure.
Meanwhile, we could lower the rating on Safilo to 'D' (Default) if the group's senior creditors accelerate the debt and the group is unable to repay. We could also lower the rating if Safilo renegotiates the original terms under its senior bank loan; fails to pay interest or principal on other financial obligations; undertakes a distressed exchange offer for all or a substantial part of its debt; or files for creditor protection.
If and when Safilo were to then emerge from any form of reorganization, we would reassess the ratings and the factors behind them, taking into account the factors that precipitated the default and also any gains achieved through the reorganization process
