OREANDA-NEWS. S&P Global Ratings said today it lowered its corporate credit rating on Modular Space Corp to 'SD' from 'CCC' and its issue-level rating on the company's senior secured notes to 'D' from 'CCC'. At the same time, we removed the ratings from CreditWatch, where we placed them with negative implications on Aug. 15, 2016.

"Modular Space Corp. announced on Aug. 29, 2016, that it elected to defer its interest payment due Aug. 1, 2016, on the company's senior secured notes, and had not cured the default within the 30-day grace period in the notes' indenture," said S&P Global Ratings credit analyst Jeff Ward. "We are lowering our corporate credit rating on Modular Space Corp. to 'SD' and our senior secured note rating to 'D' because the company failed to make its interest payment. The company is still in discussions with its noteholders."

Before this rating action, on Aug. 15, 2016, we lowered our corporate credit rating on the company and our issue-level rating on its senior secured notes to 'CCC' and placed all the ratings on CreditWatch with negative implications upon the announcement of the termination of its merger agreement with Algeco Scotsman Global S. a.r. l. This previous rating change reflected the risk associated with Modular Space Corp.'s potential inability to refinance its asset-based credit facility.