Fitch Withdraws Rating on Cap Cana, S.A.'s $250MM Sr Secured Notes Due 2013.CHICAGO -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has downgraded the rating on Cap Cana Cap Cana, located in the Dominican Republic is the largest and most ambitious tourist destination development in the country. At 47 square miles (122 km²), Cap Cana is twice the size of Manhattan. , S.A.'s (Cap Cana) $250 million senior secured notes due 2013 (the 2013s) from 'CCC/RR4' to 'D' and subsequently withdrawn the rating. The action follows the completion of a successful debt exchange on May 8, 2009 that effectively retired the 2013s. The terms of the debt exchange are considered a default on the 2013s per Fitch's 'Coercive Debt Exchange Criteria', published on March 3, 2009 Approximately 96% of Noteholders voted for the exchange. As part of the exchange, Cap Cana issued two series of new notes due in 2016. . The above rating is not applicable to the Cap Cana S.A. new notes due 2016, which have not been rated to date. Cap Cana is a 30,000-acre luxury, second-home real estate project under development and is located on the easternmost tip of the Dominican Republic Dominican Republic (dəmĭn`ĭkən), republic (2005 est. pop. 8,950,000), 18,700 sq mi (48,442 sq km), West Indies, on the eastern two thirds of the island of Hispaniola. The capital and largest city is Santo Domingo. . The company experienced financial troubles in 2008 as a result of the global economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. which severely affected access to capital as well as the project's sales environment, and as a result had to restructure its debts. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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