TEXT-Fitch afrms International Personal Finance plc at ‘BB+’
News from Reuters:

Thu Mar 29, 2012 9:15am EDT

March 29 – Fitch Ratings has affirmed International Personal Finance Plc’s (IPF) Long-term Issuer Default Rating (IDR) at ‘BB+, Short-term IDR at ‘B’ and senior unsecured debt at ‘BB+’. The Long-term IDR has a Stable Outlook.

The ratings reflect the significant credit, operational, regulatory and FX risks arising from unsecured home-collected lending in emerging markets as well as its modest business scale and diversification. The company’s funding is undiversified, relying solely on wholesale funding and its business model faces technological challenges. These risks would normally cap the ratings firmly below investment grade. However, uplift to the Long-term IDR has been provided by the company’s strong cash flow and capital generation, robust risk management, modest leverage and demonstrated management ability to rapidly restructure problem operations (Hungary in 2009).

The Stable Outlook takes into consideration IPF’s indication that it does not intend to increase its modest leverage in the near future (debt/tangible equity was a low 0.9x at FYE11) given the uncertain global economic outlook. Nonetheless, material erosion to leverage, or a sign…………… continues on Reuters

… Read the full article

Related News:

In Personal Finance on 31 March
News from Independent Online:


Illustration: Colin Daniel

It is commonly believed that you cannot go wrong if you invest in property. But is the buy-to-let market really a sure-fire way to make money? Personal Finance takes a close look at the myths and realities of property as an investment, weighing up investing directly in “bricks and mortar” with other types of property investments.

Also in our print edition this weekend: How to save on your premiums for risk life assurance.

Personal Finance is published every Saturday in the Pretoria News Weekend, the Saturday Star, The Independent on Saturday and the Weekend Argus.

…………… continues on Independent Online
… Read the full article