S&P rates Curo Group notes B-

S&P said it revised its outlook on Curo Group Holdings Corp. to positive and affirmed its B- long-term issuer credit rating.

At the same time, the agency assigned a B- issue rating on the company's senior secured notes. The recovery rating is 4, indicating an expectation of average recovery (30%-50%, rounded estimate: 35%) in the event of default.

The company plans to use proceeds to pay down its existing $528 million of senior secured notes due 2022 and its existing $115 million drawn on its non-recourse facility.

S&P said the positive outlook reflects a view that Curo will maintain a debt to EBITDA ratio between 3x and 4x and its current pace of better than expected financial performance.

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