Significant exposure to adverse Consumer Financial Protection Bureau regulatory reform Intensifying competition from new entrants Expansion into unproven geographies (i.e., Brazil) Declining EBITDA margins Significant debt to adjusted EBITDA and negative tangible equity 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 as the company balances cost controls (related to new customer acquisitions and marketing spend) and executes some of its non-payday new initiatives. We may downgrade the company within the next 12 months if regulatory, operational, or funding challenges begin
