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S&P downgrades Curo
S&P said it lowered the long-term issuer credit rating on Curo Group Holdings Corp., formerly known as Speedy Group Holdings Corp., to B- from B.
The agency also said it lowered the ratings on the company’s senior secured notes to B- from B. The recovery ratings remains at 3, indicating 30% to 50% expected default recovery.
S&P also said it lowered the rating on the company’s senior unsecured notes CCC from CCC+. The recovery rating on the second-lien term loan remains at 6, indicating 0 to 10% expected default recovery.
The outlook is negative.
The downgrades reflect the substantial declines in EBITDA because of significant regulatory changes in the United Kingdom and higher operating expenses, resulting in increased leverage and decreased cash flow through 2015, S&P explained.
Leverage expectations for the company, which includes a forecast into 2017, is 4.5x, the agency said.
Curo remains vulnerable to evolving regulatory changes, as well, S&P said.
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