Moody's on April 28 affirmed the Ba3 corporate family andsenior unsecured ratings of FirstCash Financial Services Inc.
The outlook is stable.
The affirmation follows the announcement that First Cashwill merge withCash America International Inc.in an all-stock transaction. The ratings action reflects Moody's view that themerger's financial structure is leverage-neutral.
The affirmation also reflects First Cash's successful trackrecord of acquiring and integrating other pawn stores while maintainingmoderate leverage and solid profitability.
The increased execution risk associated with integratingsuch a large acquisition will be a credit challenge, Moody's noted.