I doubt they'll survive. Metris suspends dividend, cites credit agreement MINNETONKA, Minn., Feb 27 (Reuters) - Metris Cos. <MXT.N>, a credit card company, said on Thursday it will not pay a dividend for the current quarter, ending 23 straight quarters of dividend payments, because its credit agreement bars a dividend payment after a year when Metris posts a loss. The Minnetonka, Minnesota-based company, which issues Visa and MasterCard cards to people with poor credit, had earlier on Thursday issued an erroneous statement that it planned to pay a one cent dividend on March 31. Metris in January posted a $33.9 million net loss for all of 2002, or $1.20 per share. Credit rating agency Fitch Ratings on Thursday cut Metris' senior and bank debt ratings two notches to "CCC," a low "junk" grade, from "B-minus" on concern about Metris' ability to "address liquidity concerns" with various credit providers. Fitch said it is "concerned" about Metris' ability to renew or replace conduit facilities that mature around June and July, and pay back a $100 million term loan due in June. Last month Metris said bad loan and late payment write-offs should peak this quarter. Metris shares closed Thursday on the New York Stock Exchange at $1.55, up 3 cents. They have fallen 94 percent from their 52-week high of $27.05 set last March 19. 02/27/03 20:08 ET
I mentioned (Direct Merchant's)Metris' problems a few weeks ago on the FCNB thread. Without a doubt, Metris will go the way of NextCard sometime soon. The company is in serious trouble. MBNA isn't far behind. They're in deep financial trouble too. You can't continue to make risky loans without eventually getting burned. http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&threadid=42481&highlight=FCNB
man!! I have a very very good cc with them. 90days no interst for evry purchse you make FOREVER!.. and that was the only card I have left... Oh I am gonna cry!!
"MBNA isn't far behind. They're in deep financial trouble too." I would challenge that. Where is your proof that MBNA is in serious financial health?.
