Moody’s raises Speedy Cash

Moody's Investors Service said it upgraded Speedy Group Holdings Corp.'s corporate family to B3 from Caa1 and senior unsecured ratings to Caa2 from Caa3, as well as Speedy Cash Intermediate Holdings Corp.'s senior secured rating to B3 from Caa1.

The outlook is stable. These actions conclude the review for upgrade initiated on April 29.

Moody’s said the upgrades mainly reflect the company's stable operating profitability, improved asset quality and reduced leverage.

Speedy reported solid profitability with an ROAA of 15% in the first quarter in 2015, which is higher than most of its rated peers. The company's gross margin increased to 48% in the first quarter of 2015 from 43% in the first quarter of 2014 primarily reflecting improved asset quality as a result of seasoning internet lending portfolio and enhanced underwriting measures launched in mid-2014. Provision for credit losses in the 2015 first quarter declined by 35% year over year while net charge-offs to lending revenues ratio declined to 21% in first quarter of 2015 from 31% in first quarter of 2014, which is lower than median of other rated peers.

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