Significant exposure to adverse regulatory reform Intensifying competition Expansion into unproven geographies (i.e. Brazil) Declining EBITDA margins Increasing leverage trends The negative outlook reflects S&P Global Ratings' view that Enova International Inc.'s credit profile could deteriorate within the next year to a level that is slightly weaker than the current rating would suggest because of adverse regulatory reform. We expect debt to adjusted EBITDA to remain between 4x-5x, unless performance in the U.K. improves and the company successfully balances costs, such that new customer acquisitions offset marketing spending, and executes some of its nonpayday new initiatives. We may downgrade the company within the next 12 months if regulatory, operational, or funding challenges begin to push leverage above 5.0x. There is
