S&P affirms AnaCap Financial Europe

S&P said it affirmed its BB- long-term issuer credit rating on AnaCap Financial Europe SA. The outlook is stable.

At the same time, S&P affirmed its BB- issue rating and recovery rating of 3 on the senior secured notes issued by AFE, indicating an expectation of meaningful recovery (50%-70%; rounded estimate: 60%) in the event of a payment default.

“The affirmation reflects our view of AFE's lack of operational track record, its limited scale relative to rated debt purchasing peers, and its narrow business profile,” S&P said in a news release.

“These weaknesses are mitigated by evidence of AFE's controlled growth, good understanding of its primary markets through its ability to leverage the financial services expertise of the wider group, AnaCap Financial Partners (the group), and AFE's relatively low leverage and good debt servicing.”

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