Rent-Way credit rating slips
By Furniture Today Staff -- Furniture Today, January 13, 2003
Erie, Pa. — Rent-to-own retailer Rent-Way said it is making progress toward refinancing its debt, despite a credit downgrade last week by Standard & Poor's.
The rating agency cut the company's credit and bank loan ratings to CCC from CCC+, citing "concern about Rent-Way's ability to refinance its bank loan that matures in December 2003."
Bill McDonnell, the RTO company's vice president and chief financial officer, said Rent-Way is working on reducing its debt and has cut the amount by more than $100 million in the past two years while improving margins.
The company, the second-largest U.S. RTO operator, has agreed to sell 295 stores to No. 1 Rent-A-Center and will use net proceeds to reduce debt, he said.
"We believe we are on the right track and we will continue to work diligently toward a successful refinancing," McDonnell said.
