Moody’s cuts Rent-A-Center, facilities, notes

Moody's Investors Service said it downgraded Rent-A-Center, Inc.'s debt ratings, including its corporate family rating to B2 from Ba3 and probability of default rating to B2-PD from Ba3-PD.

The agency also downgraded the secured credit facilities to Ba2 from Ba1 and unsecured notes to B3 from B1.

The speculative grade liquidity rating is unchanged at SGL-4.

The ratings remain on review for downgrade.

"Rent-A-Center's downgrade to B2 reflects the significant decline in its operating performance, credit metrics and liquidity stemming from the point-of-sale system implementation issues last fall, heavy promotional activity, and higher delinquency rates," Moody's assistant vice president Mike Zuccaro said in a news release.

"Ratings remain on review for downgrade due to the company's very weak liquidity."

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