Future Retail Ltd. missed the coupon payment on its senior secured notes due on July 22, 2022.
The India-based retailer is unlikely to make the payment during the 30-day grace period because of the commencement of insolvency proceedings, which require all outstanding payments to be submitted as claims.
S&P therefore lowered their long-term issuer credit rating on Future Retail to 'D' from 'SD'. They also lowered the issue rating on the US$500 million senior secured notes issued by the company to 'D' from 'CC'.
S&P have subsequently withdrawn all the ratings.
Jul 26, 2022 09:00 am
Standard and Poor (S&P) Global Ratings today took the rating actions listed above for Future Retail Ltd.
“We lowered our issuer and issue rating on Future Retail because the company failed to pay the semi-annual coupon due on its US$500 million senior secured notes. The coupon was due on July 22, 2022.
Future Retail is unlikely to make the payment during the 30-day grace period. This is because insolvency proceedings against the company were started on July 20, 2022. All outstanding payments to creditors (including the coupon on the senior secured notes) have to be submitted as claims. The company intends to complete the insolvency resolution process by January 2023,” quoted S&P in its latest release.
They have subsequently withdrawn all ratings.