S&P cuts Rent-A-Center view to negative

Standard & Poor's said it revised its outlook on Rent-A-Center Inc. to negative from stable.

Ratings on the company, including the BB+ corporate credit rating, BB+ secured bank loan and BB- subordinated debt, were affirmed.

The outlook revision is based on weak operating trends over the past 18 months as EBITDA declined to $341 million from $425 million and leverage increased with lease-adjusted total debt to EBITDA at 3.0x, compared with 2.2x, S&P said.

The ratings reflect the challenges of improving operations of a mature store base and the vulnerability of its customer to changes in disposable income, S&P said.

These factors are partially mitigated by the company's leading market position in the industry and moderate leverage, S&P said.

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