Moody’s changes Curo Health to negative

Moody's Investors Service said it changed the outlook for Curo Health Services Holdings, Inc. and its debt to negative from positive.

At the same time, the agency affirmed the company's B3 corporate family rating, B3-PD probability of default rating and the B2 senior secured first-lien bank debt and credit facility ratings.

"The negative outlook reflects Curo's constrained free cash flow profile owing to losses emanating from operating de novo facilities that have not yet matured, as well as elevated cash flow deployment into organic expansion," Vladimir Ronin, Moody's lead analyst for the company, said in a news release.

"Curo's expansion strategy renders more difficult and unlikely the ability to reduce a heavy financial burden, or even to internally fund any potential payouts related to ongoing legal proceedings."

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