"S&P cuts GMX Resources rating to 'CC'" ($GMXR)

This was a predictable response to the GMXR exchange offer:

The downgrade to 'CC' reflects the potential for a selective default on GMX's 4.5% senior convertible notes due 2015 ($86.3 million outstanding as of June 30, 2012), due to certain aspects of GMX's exchange offer that would constitute a distressed exchange under Standard & Poor's criteria. [...] Holders of the existing 2015 notes, regardless of when purchased, would receive significantly less than the original face value that was promised.