Moody's Ratings has confirmed Intrum AB's Caa2 corporate family rating and revised the outlook to positive from stable, the ratings agency said on Wednesday. The decision follows a series of balance sheet developments and reported operating outcomes in Intrum's 2025 results.
Moody's pointed to an improvement in leverage after Intrum repurchased a portion of its 2.0 lien notes during the second half of 2025. The agency also referenced stable Cash EBITDA and cash flow performance that were disclosed in the company's full-year 2025 report as contributing factors to its decision to alter the outlook.
In addition to the Caa2 corporate family rating, Moody's affirmed Intrum Investments and Financing AB's Caa3 backed senior secured rating that is tied to the Guaranteed Senior Global Notes - referred to as 2.0 lien notes - as well as a B3 backed senior secured rating associated with the new money bonds, identified as 1.5 lien new money notes.
Moody's explained that the positive outlook reflects its expectation of some improvement in Intrum's financial profile over the coming 12-18 months, even if operating metrics remain relatively weak. The company has outlined plans to further reduce leverage in the first half of 2026 by pursuing an additional debt portfolio sale and by redeeming 2.0 lien notes that mature in 2027, although those transactions are contingent upon creditor and regulatory approvals.
Despite the more constructive outlook, Moody's said Intrum's Caa2 corporate family rating continues to be restrained by several factors. These include sizable negative financing cash flows, diminished earnings potential driven by an inability to fully replenish loan portfolios, relatively elevated leverage, and a significant tangible equity deficit.
Under a strategy horizon through 2030, Intrum intends initially to emphasize deleveraging and improving servicing efficiency while depending on co-investors for sizable portfolio acquisitions. The company expects to later expand servicing revenue by winning clients outside the financial services sector and to increase its own investment activity once funding costs fall after the deleveraging phase.
Moody's described pathways for future rating movement. Upgrades would require sustained, demonstrable improvements in financial performance - including persistent positive earnings, steady cash flows, and reduced debt-to-EBITDA leverage. Conversely, a material deterioration in financial performance could trigger downgrades.
Clear summary
Moody's affirmed Intrum's key ratings while upgrading the outlook to positive, citing a partial repurchase of 2.0 lien notes and stable full-year 2025 cash results; however, ongoing negative financing cash flows, weakened earnings capacity, high leverage and a tangible equity deficit continue to cap credit strength. Intrum plans further deleveraging in H1 2026 subject to approvals and will pursue a 2030 strategy that first focuses on balance sheet repair before expanding investing and client segments.