New York, September 04, 2014 -- In a comment published earlier today and available on Moodys.com, Moody's Investors Service stated that the weakness in Conn's, Inc.'s ("Conn's") recently-announced second-quarter operating performance, while a credit negative, would have no immediate impact on either the Ba3 corporate family rating or the stable outlook. "Conn's has a formidable quantitative credit profile, with investment grade interest coverage and leverage that we expect will remain well within our triggers at around 4 times even after the highly-disappointing performance for the quarter," stated Moody's Vice President Charlie O'Shea. "What is concerning for us is the performance of the credit business, which spurred the weak results as the retail side of the business actually performed fairly well. However, given the reliance of Conn's retail business on its proprietary credit business, the two cannot be divorced. Going forward, it will be a critical ratings factor for the company to ensure that remediation steps are undertaken and any further damage is contained such that the company remains well-positioned against our downward rating triggers of debt/EBITDA of above 4.5 times or EBITA/interest of below 4.5 times," continued O'Shea.

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