S&P affirms Rent-A-Center

Standard & Poor's said it affirmed all its ratings on Rent-A-Center Inc., including the BB corporate credit rating.

The outlook is stable.

The recovery rating on the proposed amended and extended senior secured bank loan ratings is 2, the agency said.

"The ratings on Rent-A-Center reflect the low-income profile of its customer base which is disproportionately vulnerable to poor economic conditions (including high unemployment and inflation), the ongoing threat of regulatory and litigation risk in both the politically unpopular 'payday' lending and core rent-to-own business, and the risk of continued merchandise deflation primarily with respect to high-definition TVs," said S&P credit analyst Jerry Phelan.

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