On 13 August 2021, Fitch Ratings has affirmed Eleving Group’s (formerly Mogo Finance Group) Long-Term Issuer Default Rating (IDR) at “B-”, and removed it from Rating Watch Negative.
The outlook for Eleving Group is stable, and the affirmation is a reflection of the group’s lower leverage and progress in refinancing its bond maturing in July 2022.
The key drivers for Eleving Group’s rating are:
- The competitive nature of its market, exposure to potentially volatile markets, increased risk appetite, and high leverage.
- The largely secured nature of its lending, strong profitability, and experience of its management team.
- Improving funding flexibility thanks to a more stable macroeconomic environment.
- The expectation that its € 100 million bond will be refinanced by the end of this year.
About Eleving Group
Eleving Group was founded in 2012 in Latvia and joined the Mintos marketplace in 2015, originally offering loans for investment from Latvia. Since then, it has placed loans on the marketplace from 14 countries in the Baltics and Central, Eastern, and South-Eastern Europe. Operating regions also include the Caucasus and Central Asia, as well as Eastern Africa. Up to date, the company has issued over € 710 million in loans and has a net loan portfolio of over € 210 million.
Some of the equity investors of Eleving Group and Mintos overlap.