S&P lifts Springleaf view to positive

Standard & Poor's said it revised the outlook on Springleaf Finance Corp. to positive from stable and affirmed its B- long-term issuer credit rating.

The agency also said it assigned a B- issuer credit rating and positive outlook on Springleaf Holdings Inc.

The ratings reflect Springleaf's declining leverage, reduced 2017 debt tower, growing access to funding through the securitization markets and improving earnings, S&P said.

Springleaf began taking significant remedial steps to reduce the company's 2017 debt maturities, the agency said.

Over 2013, the company was able to restructure the amount maturing in 2017 to $2.4 billion, S&P said.

This $5 billion restructure was accomplished by using $1.45 billion from two residential mortgage-backed securitizations to pay down debt, issuing $1.25 billion in unsecured notes and extending $750 million of its secured term loan until 2019, the agency said.

The company's capital position also benefited from $231 million in equity that the company raised in connection with its recent initial public offering, S&P said.

"Despite some recent positive developments, the ratings on Springleaf reflect the company's high leverage, dependence on wholesale funding, financial sponsor ownership and stressed liquidity profile as the company continues to deleverage its balance sheet," Stephen Lynch, an S&P analyst.

The company's limited competition in the non-prime consumer lending market and prudent underwriting policies are countervailing strengths to the rating, Lynch said in a press release.

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