Fitch lowers Navient to BB-

Fitch Ratings said it downgraded Navient Corp.'s long-term issuer default rating and senior unsecured debt ratings to BB- from BB.

“Today's rating actions have been taken as part of a peer review of seven publicly rated U.S. consumer finance companies that reflects a significant revision of Fitch's economic assumptions stemming from the coronavirus pandemic,” the agency said in a press release.

“The downgrade of Navient's ratings reflect the increase in its leverage as measured by debt to tangible equity (excluding the FFELP portfolio and the debt associated with it) over the past year, and Fitch's expectation that leverage is likely to remain elevated for the foreseeable future as a result of the significant negative economic impact of the coronavirus pandemic,” Fitch said.

The outlook remains negative.

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