OREANDA-NEWS. S&P Global Ratings lowered its ratings on PDG Realty S. A. Empreendimentos e Participacoes (PDG) to 'D' from 'SD'. We also lowered our national scale issue-level rating on the company's 5th debentures to 'D' from 'brCCC'. These rating actions reflect the company's failure to pay principal on this debt issuance, which was scheduled to mature on Aug. 1, 2016, and then postponed to Sept. 1, 2016. The '2' recovery rating on this debt issuance remains unchanged, indicating a substantial recovery perspective (between 70% and 90%). For a complete recovery analysis, please see "PDG Realty Empreendimentos e Participacoes Downgraded To 'B-' From 'B'; Outlook Negative," published Aug. 6, 2015.

The company expects to negotiate the definitive rollover of the 5th debentures issuance within the next 30 days. We consider this extension as equivalent to a distressed exchange and tantamount to a default. The company is currently negotiating with most of its creditors over a significant amount of its debt. After this missed payment, we believe the company will fail to repay most of its obligations as they come due. Therefore, we're also lowering our corporate credit rating on PDG to 'D' from 'SD'.