S&P Global Ratings downgraded its corporate credit rating on San Francisco-based children's apparel retailer Gymboree Corp. to "D" from "CC."

S&P attributed this downgrading to retailer's decision to default the June 1, 201, interest payment due on its 9.125% senior notes due 2018.

S&P also lowered its issue-level rating on the company's senior secured term loan ($769.1 million outstanding as of Jan. 28, 2017) to "D" from "CC."

The rating agency said it believes the company will likely choose not to meet its debt obligations with lenders and bondholders until it has agreed on a financial restructuring plan with them and will likely default given ongoing lender negotiations.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.