S&P changes Intrum view to negative

S&P said it revised its outlook on Intrum to negative from stable and affirmed the BB/B long- and short-term issuer credit ratings.

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

“Increased operating and financing costs are likely to weigh on Intrum's earnings and could forestall the company's plans to de-lever,” S&P said in a news release.

“The negative outlook reflects that we could downgrade Intrum if management is unable to deliver lower leverage in line with targets.”

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