Moody’s cuts Amigo

Moody’s Investors Service said it downgraded Amigo Loans Group Ltd.’s corporate family rating to Caa1 from B3 and placed it on review for further downgrade.

Simultaneously, the agency placed on review for downgrade the B3 backed senior secured rating of the notes issued by Amigo Luxembourg SA. Moody’s changed both entities’ outlooks to under review from negative.

The rating action reflects Moody’s view Amigo faces heightened solvency risks after a surge in customer complaints, the agency said.

“Furthermore, it captures the uncertainties regarding the balance sheet composition, and the magnitude of the economic value loss in the coming months, as well as the senior secured bonds’ priority ranking security interest,” the agency said in a press release.

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