S&P affirms Amigo Loans

S&P said it affirmed its B+ long-term issuer credit rating on Amigo Loans Ltd.

The outlook is stable.

At the same time, the agency affirmed the B+ issue rating on the senior secured notes issued by Amigo Luxembourg SA. The recovery rating is unchanged at 4, indicating an expectation of average recovery (30%-50%; rounded estimate: 40%) in the event of payment default.

S&P said the affirmation follows the pricing of Amigo's initial public offering.

“The transaction leads to a noteworthy improvement in Amigo's credit ratios and, in our view, improves the group's financial flexibility,” the agency said in a news release.

“We also believe that the premium listing will lead to further improvements in Amigo's management and governance, and a more predictable financial policy.

“However, the transaction does not affect our view of Amigo's business profile, which remains constrained by its relatively small scale, niche and concentrated focus, and high pace of growth, which could lead to potential asset quality or operational issues.”

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