J.G. Wentworth, LLC was not bestowed with the luck of the Irish on St. Patrick's day as its credit ratings continue to flop over like a sack of potatoes.
Standard & Poors dropped J.G. Wentworth's long term counterparty rating to a "CC" with a Negative Watch from a "CCC+" where it had resided since November 2008. It's recovery rating was also dropped.
According to Standard & Poors an obligation rated "CC" is currently highly vulnerable to nonpayment.
Said S&P analyst Rian M. Pressman:
"The downgrade reflects the company's severely weakened financial position as the standstill agreement with warehouse lender Deutsche Bank nears expiration (March 20, 2009)" . As an aside Deutsche Bank has been in the news lately for being one of the counterparty finacial institutions that has been a "beneficiary" of the governments payments to AIG.
"Wentworth's ability to continue operations is limited without further financial assistance from private equity owners JLL Partners. Despite a significant reduction in headcount, the cash flow generated from Wentworth's ongoing business does not fully offset operating expenses, including debt service (estimated at more than $6 million due at the end of March)".
Less than a year ago these folks held a structured settlement thought leaders conference and structured settlement commentator and former NSSTA President Patrick Hindert gushed about structured settlement "thought leaders". To others they are merely the nation's leading cash now pusher.
When the witch hunt is over trial attorneys will discover which "trusted" financial advisers have been sashaying around with these folks.
Read more from "Another Financial Portal"
Leave a Reply