...Standard & Poor's Ratings Services' assessment of Enova International Inc.'s business risk profile as "vulnerable" primarily reflects the company's concentrated business model within a highly competitive sector with limited barriers to entry. Furthermore, we believe that Enova's high exposure to evolving regulatory risks limits the credit rating. Chicago-based Enova is an online-based specialty finance company which serves consumers and small business owners with high credit risk and limited financial resources. The company's principal products include short-term (payday), lines of credit, and unsecured installment loans to nonprime borrowers, primarily in the U.S. and U.K. As regulatory and litigation risks have continued to rise, the company, as with other peers, has taken steps to reduce its reliance on payday earnings in favor of line of credit and installment products. At the end of first-quarter 2015, payday operations represented approximately 31% of the total revenue. This is a...
