S&P Global Ratings on Aug. 7 revised the outlook on CURO Group Holdings Corp. to positive and affirmed its long-term issuer credit rating at B-.
In addition, the rating agency assigned a B- issue rating on the company's $675 million senior secured notes due 2025.
The positive outlook reflects the rating agency's expectation that the company will maintain a debt-to-EBITDA ratio between 3.0x to 4.0x. Additionally, the rating agency hopes that the company would continue to demonstrate "better-than-expected" financial results.
The rating agency also expects that the company would be able to steer its product shifts toward installment loans while ensuring that debt-to-EBITDA ratio remains below 4x.
S&P also said that the rating could be lowered if leverage spikes above 4.0x debt-to-EBITDA as a consequence of regulatory, operational or funding challenges. The rating could be raised if leverage of 3.0x to 4.0x is sustained while keeping stable EBITDA and shrinking single-pay revenue as a percentage of total revenue.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.