Enova International, Inc.

The stable outlook over the next 12 months reflects our expectations of sustained leverage, measured by debt to adjusted EBITDA, of 4.0x-5.0x on a sustained basis. Our outlook also considers no imminent refinancing risk, adequate liquidity, EBITDA coverage of 3.5x-4.5x, ENVA transitioning to small business loans, and its growing tangible equity. We could lower the ratings over the next 12 months if leverage, measured by gross debt to EBITDA, rises above 5.0x. We could also lower the ratings, if ENVA's credit performance materially deteriorates or it becomes subject to a material regulatory finding, such that it impedes operating performance. An upgrade is unlikely over the next 12 months. Over time, we could raise our ratings if leverage remains below 4.0x

...We expect operating performance to normalize as origination volume rises and net revenue margin reduces. As the economy opens and things normalize, we expect Enova International, Inc.'s (ENVA) revenue to increase as origination volume rises but net revenue margin to decline due to increased fair value adjustments for credit losses. State regulatory risk will persist. We continue to see state regulators clamping down on high-cost consumer loans by passing bills that cap the interest rate charged on consumer loans. In 2021, Illinois capped the maximum rate at 36% for consumer products. We expect ENVA to have modest exposure to the state. Receivables consist primarily of small business and installment loans. The acquisition of OnDeck in 2020 further diversified ENVA's product offering. As of March 2021, the company's receivables were 52% small business, 33% installment lending, 14% line of credit, and 1% short-term loans. Outlook The stable outlook over the next 12 months reflects our expectations...

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