Fitch places Mogo on watch

Fitch Ratings said it placed Mogo Finance SA’s B- long-term issuer default rating and senior secured debt rating on rating watch negative, reflecting marked deterioration in its leverage position.

“The RWN reflects a material reduction in tangible equity (45% in 3Q20), due to foreign-currency (FX) losses and increased levels of intangible assets following bolt-on acquisitions during the quarter. Leverage, defined as gross debt-to-tangible equity, increased to about 20x at end-3Q20 from 10.6x at end-2019, which is considerably higher than Fitch’s range for a b category leverage assessment,” Fitch said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.