Moody's assigns B1 to PROG

Moody's Investors Service said it assigned a first-time B1 corporate family rating and a B1 long-term senior unsecured rating PROG Holdings, Inc.

“The assigned CFR is derived from Prog Holdings' b1 stand-alone assessment, which is supported by its solid franchise as a provider of alternative financial leasing, resulting in strong profitability. The standalone assessment and ratings also incorporate the risks to creditors from the firm's subprime consumer focus resulting in weak asset quality, declining capitalization from higher debt and planned shareholder distribution reducing its ability to absorb unexpected losses, and a business model largely reliant on a single product,” Moody’s said in a press release.

The outlook is stable, reflecting the views that PROG will maintain earnings, leverage and liquidity consistent with its rating level over the next 12-18 months.

© 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.