S&P shifts Together view to positive

S&P said it changed the outlooks on Together Financial Services Ltd. and its nonoperating holding company Bracken MidCo1 plc to positive from stable.

“Together's earnings have remained resilient in an uneven macroeconomic environment. Despite a challenging economic environment, Together has reported robust results throughout the pandemic. In the 12 months to June 2021, the group reported a stable top line of £371.6 million and net income of £92.2 million at the Redhill Famco level. While there is downward pressure on net interest margins as the group diversifies its lending profile in a still competitive and low-yield U.K. mortgage market, Together has mitigated some of this pressure by reducing its operating expenses and lowering the funding costs on its facilities,” S&P said in a press release.

“If the group can continue to maintain its adequate capital ratio, strong asset quality and robust earnings, even as it grows rapidly, while securing sufficient sources of funding relative to its needs, we could revise upward our group credit profile to 'bb', and so could raise our ratings on Together and Bracken,” the agency added.

Concurrently, the agency affirmed the BB- long-term issuer credit rating on Together and the B+ long-term issuer credit rating on Bracken. S&P also affirmed the issue ratings on the senior secured notes issued by Jerrold Finco plc, a subsidiary of Together, and the payment-in-kind toggle notes issued by Bracken.

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