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S&Ps Downgrades Global Investment House

This comes close on the heels of Fitch Ratings downgrading Tuesday of Global’s credit rating to one grade above default.

S & P cited Global’s non-payment of a $200-million syndicated loan due last December 15 with the investment stretching the maturity of the loan to December 22. Global’s credit ratings were lowered from ‘BBB/A-3’ to selective default, which means payments may not be made on some financial obligations.

“This is classified as a distressed exchange offer and is therefore considered as a selective default,” S & P said in a statement. S & P said it will continue to follow closely the developments at Global and will adjust its ratings depending on the outcome of its between the bank and its creditors.

Global on the other hand is confident it can still reverse the downgrades it has been getting from credit rating agencies.

“We have the available means and on December 21, we will meet with the banks and announce our plans to refinance our debt,” Sunny Bhatia, Global’s chief finance officer was quoted as saying Wednesday in a Zawya Dow Jones interview.

Global had earlier this month assigned the Commercial Bank of Kuwait to lead in the renegotiations of its credit facilities.