Moody’s downgrades Curo

Moody's Ratings said it downgraded Curo Group Holdings Corp.'s corporate family rating to C from Ca and its senior secured debt rating to C from Caa3. The agency, however, affirmed the senior unsecured debt rating at C and changed the outlook to stable from negative. Following today's actions, Moody's will withdraw Curo's ratings.

On March 25, Curo voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code and entered a restructuring pact with its noteholders and stakeholders.

This action followed Curo's recent solicitation of the holders of its 1.5L notes to amend the indenture and extend the five business day grace period related to the non-payment of interest to 30 calendar days. Moody's said it considered the extension as a missed payment default and which drove the Feb. 12 downgrade of the ratings.

If the restructuring plan is approved, consenting noteholders will exchange their 7˝% senior 1.5 and 2 lien secured notes due 2028 of about $682 million and $318 million principal and accrued interest, respectively, for new equity interests in the reorganized firm.

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