On June 26, 2017, S&P Global Ratings lowered its issuer credit rating on J.G. Wentworth LLC (JGW) to CCC- from CCC+ and its senior secured debt rating to CCC- from CCC+. “Our rating action today reflects our opinion that a distressed debt exchange transaction, which the company publicly disclosed it was contemplating earlier this year, is likely in the next six months,” said S&P Global Ratings credit analyst Chris Cary. According to S&P Global, the negative outlook reflects the expectation that JGW is likely to negotiate a distressed exchange offer with its debtholders in the next six months. While management has restored the structured settlement business to profitability and the mortgage business is growing at a steady pace, S&P does not think the cash flows from these businesses will be sufficient to repay the current outstanding senior unsecured debt due early in 2019. Read more on distressed companies.
About Kerry Mastroianni
Kerry Mastroianni, the editor of The Distressed Company Alert, has been researching distressed and bankrupt companies for over 18 years. As a 10-year employee of New Generation Research, she is also a data editor for Bankruptcy Week and the editor for our annual Bankruptcy Yearbook & Almanac. Prior to Kerry’s employment at NGR, she worked for eight years as a research analyst for KPMG’s corporate recovery practice.