Fitch Ups International Personal Finance Outlook To Stable

LONDON (Alliance News) - International Personal Finance PLC on Monday noted that credit rating ...

Alliance News 8 April, 2019 | 12:22PM
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LONDON (Alliance News) - International Personal Finance PLC on Monday noted that credit rating Fitch Ratings revised its outlook on the company to stable from negative last Friday.

Furthermore, Fitch affirmed the home credit provider's long-term credit rating at BB and short-term rating at B.

"Fitch stated that the revision reflected their view on regulatory and tax issues in Poland, and the increasing geographic diversification of IPF's operations," International Personal Finance said.

In February, the Polish Ministry of Justice published a bill setting out a modified set of proposals about the caps on costs to be charged by lenders for consumer loans.

These caps are "significantly less punitive" than those initially proposed in 2016, Fitch explained.

Fitch said on Friday: "The revision of the outlook reflects a lower likelihood of more severe consumer loan rate cap in Poland that would damage the business model and increasing geographical diversification of the operations outside Poland.

"While the tax challenge by the Polish authorities remains a risk and exposes IPF to potential material cash outflows, Fitch believes this would not pose significant risks to the sustainability of IPF's business model."

Besides the UK and Poland, IPF operates in 9 other countries, including Mexico, Spain and Australia.

International Personal Finance shares were trading up 1.8% at 203.50 pence each on Monday.

By Elena Cherubini; elenacherubini@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
International Personal Finance PLC 54.53 GBX -5.99 -

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