HomeGold Financial Inc.'s 10.75% senior unsecured notes due 2004 have been downgraded from B-minus to CCC-plus and removed from RatingAlert by Fitch IBCA.The Greenville, S.C.-based home equity lender and servicer reported a net loss of $20.6 million in the first quarter as a result of several one-time charges, prompting the rating agency to place the $125 million of senior debt on RatingAlert on May 7. The latest rating action reflects HomeGold's "limited financial flexibility," uncertainty about the company's ability to execute a whole loan strategy to improve cash flow, heightened competition, and HomeGold's "limited equity base," Fitch IBCA said.
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