Mountain Province Diamonds' credit rating has been downgraded due to debt restructuring: S&P Global.

S&P Global Ratings has downgraded the credit rating of Mountain Province Diamonds Inc. (MPV), a Canada-based company, due to distressed debt restructuring. The issuer credit rating (ICR) has been lowered from 'CCC' to 'SD' (selective default), while the rating of the company's subordinated bonds maturing in December 2025 has dropped from 'B-' to 'D'.

These changes stem from MPV altering the terms of its senior secured subordinated bonds, extending their maturity from December 2025 to December 2027 and lowering their priority ranking. According to S&P Global Ratings, these modifications are considered a distressed debt restructuring and are equivalent to default under their rating methodologies. This downgrade reflects the company’s minimal liquidity and the reduced returns for bondholders compared to initial promises. The changes are part of a larger refinancing transaction, which includes a new term loan of up to $40 million and a $33 million working capital loan.