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Dollar Financial could face S&P downgrade

AP
posted: 89 DAYS 12 HOURS AGO
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NEW YORK -Standard & Poor's Ratings Services said Thursday it may downgrade the credit rating of Dollar Financial Group Inc. if the company completes a new debt issuance.
Dollar Financial's ratings were placed on CreditWatch with negative implications, S&P analysts said.
If Dollar Financial completes plans to borrow $250 million through issuing senior notes, the ratings service may downgrade the company's rating, including the long-term counterparty credit rating, which is now at "junk" status at "BB-."
Dollar Financial announced plans to issue senior notes to finance the acquisition of Military Financial Services LLC. The additional debt is high for the company's current ratings and S&P likely will lower the rating if the transaction closes, analyst Adom Rosengarten said in a statement.
Dollar Financial shares rose 42 cents to close at $23.28.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
2009-11-12 16:12:13
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