Dollar Financial Could Face S&P Downgrade

NEW YORK (AP) — Standard & Poor's Ratings Services said Thursday it may downgrade the credit rating of Dollar Financial Group Inc. if the company completes a new debt issuance.

Dollar Financial's ratings were placed on CreditWatch with negative implications, S&P analysts said.

If Dollar Financial completes plans to borrow $250 million through issuing senior notes, the ratings service may downgrade the company's rating, including the long-term counterparty credit rating, which is now at "junk" status at "BB-."

Dollar Financial announced plans to issue senior notes to finance the acquisition of Military Financial Services LLC. The additional debt is high for the company's current ratings and S&P likely will lower the rating if the transaction closes, analyst Adom Rosengarten said in a statement.

Dollar Financial shares rose 42 cents to close at $23.28.