Fitch upgrades Together, notes

Fitch Ratings said it upgraded Together Financial Services Ltd.’s long-term issuer default rating to BB from BB- and the rating of the senior secured notes issued by subsidiary Jerrold FinCo plc to BB from BB-.

At the same time, the agency upgraded the long-term issuer default rating of Together's indirect holding company Bracken Midco1 plc to BB- from B+, and the rating of its senior PIK toggle notes to B from B-.

Fitch said the issuer default rating and senior debt ratings were upgraded in the light of Together's sound performance since its buyout of minority shareholders in 2016, reflected in further broadening of the group's funding sources, deepening of the senior management team and the group's continuing solid profitability.

The outlook on both long-term issuer default rating is stable.

“The ratings reflect Together's concentration of activities within UK specialist mortgage lending, a segment characterized by higher arrears and loan servicing requirements relative to high street lenders but one where the group's market position affords the group some pricing influence,” the agency said in a news release.

“They also take account of the moderate leverage of Together by mainstream lender standards, its continued progress in diversifying funding sources and maturities, and the steps taken to strengthen senior management resources within an improved governance structure.”

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