Moody's: AmeriCredit outlook negative

Moody's Investors Service said it confirmed the ratings of AmeriCredit Corp., including the B2 senior unsecured debt rating, and assigned a negative outlook.

This concludes the review for possible downgrade begun on Nov. 19.

The confirmation follows AmeriCredit's recent amendment and extension of its master warehouse facility and its MTN V warehouse facility. The agency said the amendment and extension address a substantial financial uncertainty and provide adequate financial flexibility, although the amendment's terms and conditions are materially less favorable to the company.

The rating action also reflects Moody's view that AmeriCredit's unsecured debt maturity profile is manageable, with the remaining due dates being September 2011, September 2013 and June 2015.

The negative outlook reflects the risks AmeriCredit faces given the severe recession being experienced by the U.S. economy and the continuing disruption of the capital markets and is consistent with Moody's outlook for the U.S. consumer finance industry generally and auto finance specifically, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.