Are the fat Viking opera singers now belting out "We're JG Wentworth and WE need cash now!"?
On November 26, 2008 Standard & Poor's cut counterparty and senior-secured bank loan ratings on J.G. Wentworth LLC, the "cash now pusher" firm that buys structured settlement payment rights, to 'CCC+' from 'B-', and warned it could cut AGAIN. "Wentworth's financial position could deteriorate further unless it receives additional capital to meet margin calls, fund structured settlement/annuity purchases, and pay fixed obligations," due to "severe dislocation of the credit markets" that have "rendered unprofitable" some financing transactions.
A rating in the CCC category is non-investment grade (Wikipedia refers to it as "junk bonds") and indicates a current identifiable vulnerability to default and is dependent upon favorable business, financial and economic conditions to meet timely payment of interest and repayment of principal. In the event of adverse business, financial or economic conditions, it is not likely to have the capacity to pay interest and repay principal
The above action follows one on October 7, 2008 where Standard & Poors placed JG Wentworth's 321 Henderson under review following the Fresno Rulings.
Click here to access commentary in the publication "Philly Deals"
Click here for the Standard and Poors Press Release header
* JG Wentworth is not a "structured settlement" firm. It is a factoring company
Leave a Reply