Credit Corp shares plummet on impairment warning

The news: Credit Corp shares plunged by almost a third in early trading after the value of its US debt assets sunk under delinquencies.

The numbers: The debt collection company said the impairment would be worth about 14% of the value of its US Purchased Debt Ledger (PDL) assets and represent a $45 million one-off reduction in net profits after tax. CCP shares were trading 31.0% lower at 10:40 AEDT, sliding from $14.44 to as low as $11.66 in early trading.

The context: The deficiency was rooted in a deterioration in collection conditions and US repayment delinquencies continuing into the new financial year. Despite the fall in conditions, Credit Corp grew collections by 10% in July and August, but remained flat in September.