Brookfield Subsidiary Defaulted on $500 Million Debt in Peru, S&P Says

A toll operator subsidiary of Brookfield Asset Management that drew the ire of one of Peru’s top presidential contenders has defaulted on $500 million in bonds, hurting pension funds that own a majority of the debt.

S&P Global Ratings said the company, known as Rutas de Lima, had defaulted after only being able to repay bondholders 6% of its 1.8 billion soles ($524 million) in outstanding debt. S&P added Wednesday that it had downgraded its debt to D, a rating that means the company has defaulted.