DBRS Downgrades Armtec Holdings Limited to SD

DBRS Limited (DBRS) has today downgraded the Issuer Rating of Armtec Holdings Limited (Armtec or the Company) to SD (Selective Default) from CC and its Senior Unsecured Debt (the Notes) Rating to D (Default) from C. Both ratings have been removed from Under Review with Negative Implications. At the same time, DBRS has discontinued the Recovery Rating of RR6 assigned to the Senior Unsecured Debt.

The rating actions follow Armtec’s non-payment of interest on its unsecured debt obligations at the end of the 30-day grace period following the March 22, 2015, due date, consistent with the Company’s announcement of non-payment of interest made on March 19, 2015. DBRS had indicated that this rating action was possible in its February 26, 2015, press release on the Company.

The Issuer Rating of SD reflects that Armtec has not defaulted on its credit facilities, which were extended to May 11, 2015, or on the senior secured notes, which have obtained covenant waiver from lenders until the same day. DBRS understands that the payment default on the senior unsecured debt will not trigger the cross-default provisions of the credit facilities. The Issuer Rating will be changed to D in the event that Armtec is unable to repay or refinance these senior secured debt upon their maturities, both on May 11, 2015.

Notes:
The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodologies are Rating Companies in the Industrial Products Industry (June 2015), DBRS Criteria: Financial Ratios and Accounting Treatments – Non-Financial Companies (January 2014) and DBRS Recovery Ratings for Non-Investment Grade Corporate Issuers (February 2015), which can be found on our website under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.