SquareTwo Financial Receives Positive Credit Rating

DENVER, April 26 /PRNewswire/ -- SquareTwo Financial, a leader in the $40 billion asset recovery and management industry, today announces that the company has received a positive credit rating from debt-rating agencies Moody's and Standard & Poor's. At the same time, both agencies assigned positive ratings to SquareTwo Financial's proposed issuance of $300 million in senior secured second-lien notes.

SquareTwo Financial received a 'B' counterparty credit rating from Standard & Poor's and an equivalent B2 Corporate Family Rating from Moody's. The company's unique, franchise-based collections network was a key factor to its favorable credit rating.

"SquareTwo's network of attorney-owned franchises has proven to be an efficient collections model for the company," said Curt Beaudouin, vice president and senior analyst for Moody's.

According to the analysts at Moody's and Standard & Poor's, some of the other factors contributing to SquareTwo Financial's favorable rating include:

• The company's extensive track record and experienced management team;
• Its position as one of the leading players in the charged off consumer debt management industry; and
• Favorable market conditions and an improving economy.

"I am pleased with the ratings that we received from both Moody's and Standard & Poor's," said Paul A. Larkins, president and CEO of SquareTwo Financial. "We've made great strides over the past year, rolling out a new strategic plan, hiring a new executive team and continuing our significant investments in technology. A strong credit rating is one more indication that SquareTwo Financial is well positioned within the debt buying industry and poised for growth."

About SquareTwo Financial

SquareTwo Financial is a leader in the $40 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, automotive, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company's national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colorado. Visit www.squaretwofinancial.com for more information.

SquareTwo Financial Website: www.squaretwofinancial.com

SOURCE SquareTwo Financial