Heightened operational and transition risks following recent merger and acquisition activity. Concentrated focus on the distressed debt industry, with coverage of relatively mature markets that are exposed to significant competitive pressures. Despite being focused solely on the purchasing and servicing of consumer debt, asset class diversification is good relative to peers. Top tier positions in Austria, Germany and the U.K., with solid performance to date. Balance sheet leverage is relatively high within the peer group, with outstanding senior secured and unsecured debt totaling a nominal value of about £1.3 billion, and projected S&P Global Ratings'-adjusted EBITDA of about £260 million. Debt servicing capacity, as measured by adjusted-EBITDA to interest expense, is projected to remain relatively weak at around 3x. Recent
