Moody's rates J.G. Wentworth loan B2

Moody's Investors Service said it assigned a B2 corporate family rating to J.G. Wentworth LLC and a B2 rating to the company's $200 million senior secured term loan offering. The outlook is stable.

The ratings reflect J.G. Wentworth's significant position as a leader in the structured settlement market, the agency said. The company's operating performance the last several years has been solid, with operating margins exceeding 30% and significant cash flow generation.

Moody's also said that the rating is supported by the characteristics of a structured settlement. J.G. Wentworth's purchased settlements have maintained an average yield in excess of 13%. Credit quality has not been a significant issue because the providers of the annuity payments are primarily highly rated insurance companies. In addition, since June 2000, all of the company's structured settlements have been approved by a judge that assigns payment of the annuity to J.G. Wentworth from the claimant.

These positive attributes are balance by some risks, the agency said. J.G. Wentworth is adding substantial financial leverage with the loan and will pay a large dividend to its owners.

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