Moody's turns 4Finance view to stable

Moody's Investors Service said it affirmed 4Finance Holding SA's B2 long-term corporate family and long-term issuer ratings of B2, together with the B2 long-term backed senior unsecured debt ratings of 4Finance, SA and changed their outlook to stable from negative.

“The change of outlook to stable from negative nonetheless reflects 4Finance's strengthened funding position following the completion of the bond refinancing process in October, leading to the issuance of a five-year €175 million bond redeeming the remaining $200 million bond,” Moody’s said in a press release.

However, the need to resort to the bond extension in 2020 on the initial €150 million bond highlighted 4Finance’s limited options to access additional sources of liquidity in the event of a shock, the agency noted.

4Finance has now balanced its medium-term capital structure, with two euro-denominated bond issues of similar sizes maturing in February 2025 and October 2026, while maintaining a sound liquidity position, with €85.3 million of cash in the online business at the end of September, Moody’s said.

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