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RHG dismisses rating downgrade

by Staff Reporter7 minute read

RHG has dismissed Moody’s Investor Service credit rating downgrade, stating the decision will have “minimal if any” impact on the group’s profit.

Late last week, Moody's Investors Service downgraded the ratings of 14 tranches and confirmed the ratings of 5 tranches from five RMS and three RHG transactions, all serviced by Receivables Servicing Pty Limited, a wholly owned subsidiary of RHG Limited.

The rating actions reflect the lack of sufficient liquidity in the transactions under a servicer transfer scenario.

But despite the downgrade, a spokesperson for RHG told The Australian Financial Review that everything would be business as usual for the company and there would be no change to its “day-to-day operations”.

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