Moody’s ups Rent-A-Center, rates loan Ba3

Moody's Investors Service said it upgraded Rent-A-Center, Inc.'s corporate family rating to Ba3 from B1 and probability of default rating to Ba3-PD from B1-PD and assigned a Ba3 rating to its proposed $200 million senior secured term loan.

At the same time, Moody's upgraded Rent-A-Center's speculative grade liquidity rating to SGL-2 from SGL-3. The outlook remains stable.

Moody's said it expects that proceeds from the proposed term loan along with borrowings under a proposed $300 million asset-based revolver will be used to refinance existing debt and for general corporate purposes.

“The upgrade of Rent-A-Center's corporate family and speculative grade liquidity ratings reflect its improved liquidity due to the pending refinancing, along with continued improvement in operating performance and credit metrics as a result of the successful implementation of its strategic turnaround plan and significant debt reduction,” Mike Zuccaro, Moody's vice president, said in a news release.

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