S&P ups CNG notes, changes view

S&P said it revised its outlook on CNG Holdings Inc. to positive from stable and affirmed its CCC+ issuer credit rating.

The agency also raised the issue rating on CNG's senior secured notes to CCC+ from CCC and revised the recovery rating to 4 from 5, indicating an expectation for modest recovery (30%) in the event of default.

“Since repurchasing debt at distressed prices in 2016, CNG has continued to improve its performance by cutting costs, tightening its underwriting standards and shifting further into installment lending–reducing its probability of default,” S&P said in a news release.

“CNG also announced the sale of its SmartPay business in February 2018, and we expect the company to use the proceeds to pay down debt the subsidiary that owns SmartPay owes to external creditors as well as to parent CNG Holdings.”

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