S&P boosts Dollar Financial notes

Standard & Poor's said it affirmed its B+ long-term counterparty credit rating on Dollar Financial Group Inc. and also raised its senior unsecured debt rating for the company's 9.75% notes due 2011 to B+ from B.

S&P noted the rating action on the firm's senior unsecured debt resulted from a lessening of the proportion of secured financing relative to the firm's overall debt burden.

The agency said the ratings are limited by the firm's high leverage and moderate interest coverage.

The rating also takes into account Dollar's good geographic diversity and limited exposure to economic cycles, as well as demographic and technological trends that buttress management's strategy of pursuing growth in the nonbank financial services arena, S&P noted.

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