Moody’s moves PRA view to negative

Moody's Investors Service said it confirmed PRA Group Inc.’s Ba1 corporate family rating and Ba2 senior unsecured and guaranteed senior unsecured debt ratings and revised the outlook to negative from under review.

These actions finish the review for downgrade started on Aug. 25, the agency said.

“Moody's confirmation of PRA's CFR at Ba1 reflects the rating agency's expectation of a strengthening of the company's profitability and leverage metrics in the next 12-18 months, driven by the company's initiatives under the leadership of its new CEO and CFO, aimed at improving its cash collections, operational effectiveness and revenue generation from acquired portfolios,” the agency said in a statement.

The negative outlook mirrors the risk the initiatives will take longer or not be completely successful, which would lead to profitability and leverage, not in line with the current Ba1 CFR, Moody’s said.

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