S&P cuts Amigo Loans

S&P said it downgraded Amigo Loans Ltd. and its senior secured bonds to CCC+ from B and B-, respectively. The recovery rating is unchanged at 5 (10%-30%; rounded estimate: 10%).

The company launched a strategic review and a formal sale process. Also, the CEO departed.

“These frequent and unexpected developments have caused us to question Amigo’s future strategic direction, financial policy, and operating model,” S&P said in a press release.

The agency placed the ratings on CreditWatch negative, given the near-term uncertainty associated with the sale process and the view that Amigo’s debt-servicing capacity and earnings performance may suffer higher pressure, S&P said.

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