Company Interview / Credit Corp does debt right with a quiet US turnaround

Credit Corp (ASX:CCP) is undergoing a FY25 change, attributed primarily to its expanding US operations. Speaking to ausbiz on the sidelines of the TIP Emerging Wealth Winners conference, Michael Eadie, Credit Corp CFO, says the business has invested heavily in operational improvements, boosting its US debt-buying activities by around 50%. With a market share of less than 5% in the massive US sector, Eadie sees scope for further growth without disrupting the competitive landscape. He points to stable supply and pricing in the US debt market as reasons for continued investment confidence, describing the US as the engine of future earnings growth for Credit Corp over the coming years.

Eadie identifies key risks in the US market, including potential strain on US consumers and the possibility of competitors bidding prices up to uneconomic levels. Stress testing is conducted by maintaining a small buffer in pricing assumptions, though Eadie notes Credit Corp does not engage in macroeconomic forecasting. Diversification, particularly through expanding consumer lending and entering the UK market, is also a strategy to mitigate concentration risk. Eadie indicates that capital allocation remains flexible depending on prevailing market opportunities, but currently sees the US debt ledger market as offering the best prospects.

Eadie confirms that FY26 growth is heavily reliant on US operations. Domestic debt buying is expected to stabilise, without significant growth, while innovations such as the Wizard digital credit card may offer future upside. The company maintains a low gearing profile, ensuring resilience amid regulatory or funding changes within the broader private credit sector.

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