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Investing.com -- S&P Global Ratings has lowered its long and short-term issuer credit ratings for the Swedish distressed debt purchaser, Intrum AB, to ’D’ from ’SD’ (selective default). This decision comes as a correction to a previous misapplication of their "Principles Of Credit Ratings" criteria, specifically in line with paragraph 2 of this criteria.
Intrum AB’s ratings are still subject to the completion of its recapitalization procedures, which are anticipated to be finalized by July 2025. These procedures involve exchanging its existing notes with new obligations and issuing additional equity to bondholders. This plan is part of the conditions outlined in Intrum’s prepackaged Chapter 11 plan.
Intrum AB had filed for Chapter 11 protection on November 15, 2024. After receiving approval from the U.S. Bankruptcy Court on December 31, 2024, the company filed for a Swedish company reorganization process on January 8, 2025. This filing is considered a default, as opposed to a selective default, as court approval is necessary for Intrum to make payments, removing the discretion solely from the company.
S&P Global Ratings assigns a ’D’ issue credit rating when an entity files a bankruptcy petition or takes a similar action, and a default on the obligation is virtually certain. This rating is then reflected in the issuer credit rating (ICR) to signify the impact of the filing.
In April, the Stockholm District Court held a meeting where Intrum’s creditors unanimously approved the company’s recapitalization transaction under the conditions previously confirmed in its Chapter 11 plan and lock-up agreement with its creditors. Following the completion of Intrum’s recapitalization procedures, S&P Global Ratings will re-evaluate the company’s creditworthiness and its revised capital structure.
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