Moody’s might drop SquareTwo, loans, notes

Moody's Investors Service said it placed SquareTwo Financial Corp.’s Caa2 corporate family rating, Caa1 senior secured first-lien term loan and revolving credit facility, Caa3 senior secured term loan and Ca senior secured second-lien notes under review for possible downgrade.

Moody’s said the review is due to its growing concerns regarding repayment of the $19.1 million legacy senior secured second-lien notes maturing in April 2017. Any delay in repayment would risk acceleration of its other debts, risking the long-term viability of SquareTwo and heightening the risk that the company could ultimately liquidate with less than optimal pricing of its assets, the agency added.

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