S&P Keeps Bankrate (RATE) on CreditWatch Negative Following Receipt of Noteholder Consent on Indenture Amendment

Standard & Poor's Ratings Services said it kept all of its ratings, including the 'B+' corporate credit rating, on Bankrate (NYSE: RATE) on CreditWatch, where we placed them with negative implications on Sept. 14, 2015.

Bankrate announced that it has received the majority noteholder consent needed to execute on an amendment to the indenture. Under the proposed amendment, Bankrate will have until June 24, 2015 (or, if the Second Consent Payment is made, July 14, 2015) to deliver their audited third-quarter 2014, full-year 2014, and first-quarter 2015 financials.

"We aim to resolve the CreditWatch placement after receiving the results of the SEC investigation and the company's internal review," said Standard & Poor's credit analyst Heidi Zhang.

If the conclusion of the SEC investigation and subsequent financial restatements result in a material impact on the previous financial statements or significant fines, we could lower the ratings further.

If the SEC investigation is concluded with minimal impact on the company, we could affirm the ratings on the company. On the other hand, if the investigation goes beyond the June 24, 2015 deadline to produce audited financial statements outlined in the supplemental indenture to the senior notes, we could also consider suspending the rating until the audited financial statements can be provided.

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