Moody’s reviews Enova for cut

Moody's Investors Service said it placed Enova International, Inc.'s B2 long-term senior unsecured and corporate family ratings on review for downgrade, following the company's announcement to acquire On Deck Capital, Inc.

Enova has disclosed that the transaction is valued at about $90 million, $8 million of which will be paid in cash and the remainder in equity, the agency said.

Moody's said the review will focus on assessing whether the benefits from the acquisition fully offset the credit challenges resulting from higher leverage and higher level of operational risk, including integration risk, particularly during a time of great economic dislocation due to the ongoing coronavirus pandemic.

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