S&P changes DriveTime outlook

S&P said it revised the outlook on DriveTime Automotive Group Inc. to negative from stable and affirmed the B issuer credit secured debt ratings.

The agency said the negative outlook is driven by the company's deterioration in financial performance mainly because of growth in provisions for credit losses.

S&P said it expects that DriveTime may continue to report net losses over the next six to 12 months because of elevated provisions for loan losses and net charge-offs of 14% to 15% of average finance receivables while maintaining leverage of 3x to 4x debt to adjusted equity.

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