Moody’s reviews PRA for downgrade

Moody's Investors Service said it placed PRA Group, Inc.’s ratings on review for downgrade, including the Ba1 corporate family rating and Ba2 senior unsecured and backed senior unsecured debt rating. Previously, the issuer outlook was stable.

“The review for downgrade is driven by the underperformance of PRA's U.S. business. During the review, Moody's will assess the potential for further strain on PRA's profitability, as well as the mitigating impact from the company's initiatives aimed at improving its collections, cost structure and revenue generation from acquired portfolios. In addition, the review will assess the financial and governance implications of the departure and replacement of the company's longstanding former CEO and CFO and any related strategic changes,” the agency said in a press release.

Moody’s noted PRA obtained a waiver from its lenders after it breached its revolver profitability covenant in the first quarter.

© 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.