Fitch rates Paragon notes BBB-

Fitch Ratings said it assigned an expected BBB- rating to the Paragon Group of Cos. plc’s prospective issuance under its £1 billion euro medium-term note program.

The expected rating is in line with Paragon’s long-term issuer default rating of BBB- due to the notes’ status as senior unsecured obligations, Fitch said.

Although the notes rank junior to Paragon’s securitized debt obligations, their alignment with the issuer default rating also is based on the adequate availability of unencumbered assets, the agency said.

The rating reflects Paragon’s strong asset quality as its buy-to-let loan book currently has a very low level of impairment, Fitch said.

But, the agency noted the potential for impairment to increase should the current benign low-interest operating environment become more challenging.

The ratings also consider the stability and experience of Paragon’s management team, Fitch said, and its success in steering the group through the economic crisis while maintaining profitability.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.