Tuesday, 3 February 2009

Vitro Ratings Downed to D as Company Fails to Make Coupon Payment

Standard and Poor's downgraded Vitro SAB's credit ratings to D from CC, and said recovery rates for its bonds is now at 3. Vitro failed to make good on promises to pay $13 million in interest for its 2012 bonds and $32 million for its 2017 bonds. The company will forgo a 30-day grace period to pay interest on the debt that expires on Mar. 3. As some of you might remember, Vitro lost millions of dollars in August following bad bets it made on derivative contracts.

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