S&P revises Intrum view to negative

S&P said it revised its outlook to negative from stable on Intrum AB (publ).

At the same time, S&P affirmed the BB+/B long- and short-term issuer credit ratings on the company.

S&P also affirmed the BB+ issue rating on Intrum's senior unsecured notes. The recovery rating is unchanged at 4, indicating an expectation of average recovery (30%-50%; rounded estimate: 40%) in the event of payment default.

“The outlook revision is based on our view that it could take Intrum longer to sustainably reduce leverage than we expected, due to the possibility that it may need to adopt a more aggressive financial risk profile than we anticipated in light of its ambitious earnings-per-share target,” S&P said in a news release.

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