Moody's Affirms Enova's B1 Rating, Moves Outlook to Stable After Canceled Acquisition

Moody's Ratings has affirmed Enova International, Inc.'s (NYSE:ENVA) B1 corporate family rating and B2 senior unsecured ratings, changing the company's outlook to stable from a review for upgrade. The rating action concludes a review process that began late last year.

Rationale for the Change

The decision follows Enova's announcement on September 14, 2026, that it had withdrawn its application to acquire Grasshopper Bank. Moody's had initially placed Enova's ratings on review for a potential upgrade on December 17, 2025, following the news of the proposed acquisition.

With the deal now off the table, the rating agency stated that Enova's credit profile remains "broadly unchanged." The stable outlook reflects the resilience of the company's core online lending businesses, which serve non-prime consumers and small to medium-sized businesses, despite macroeconomic pressures from inflation and rising interest rates.

Capital and Future Plans

Following the withdrawal of its acquisition application, Enova announced its intention to resume share repurchases at an accelerated pace. Moody's noted it expects the company's strong earnings to support its capitalization levels.

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The agency projects Enova's capitalization, measured as tangible common equity to tangible managed assets, will remain in the 17% to 22% range.

Potential Rating Triggers

Moody's outlined specific conditions that could lead to future changes in Enova's rating. An upgrade could be considered if the company reduces its legal and regulatory risks while maintaining strong profitability and keeping its capitalization above 20%.

Conversely, a downgrade could occur under several scenarios:

• A significant degradation in asset quality.
• A sustained decline in profitability, with net income to average managed assets falling below 4%.
• A sustained drop in capitalization, with tangible common equity to tangible managed assets falling below 17%.