S&P cuts Dollar Financial Group view to stable

Standard & Poor's said it revised its outlook on its B+ long-term counterparty credit rating on Dollar Financial Group Inc. to positive from stable and affirmed the current rating.

S&P noted that the rating on Dollar is based on the company's low capital levels, negative tangible equity, high leverage and moderate interest coverage.

The rating also imputes Dollar's good geographic diversity and limited exposure to economic cycles as well as demographic and technological trends that buttress management's strategy of rolling up small competitors in its check-cashing/payday-lending market segment, the agency said.

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