(Bloomberg) -- Debt collector iQera Group SAS — along with its shareholders and advisers — is evaluating various options for its capital structure, the company said in a report published Monday. 

The French company blamed the interest-rate environment, its capital structure and level of indebtedness for burdening “its ability to invest sufficiently to preserve future cash flows and ensure its medium and long-term development,” according to its Activity and Responsibility report.

A representative for iQera didn’t respond to requests for comment on what options it’s considering. The company, owned by BC Partners and Montefiore Investment, refinanced its debt last year but still has about €100 million ($106 million) due in September. 

A representative for BC Partners declined to comment while a Montefiore spokesperson didn’t respond to requests for comment.

The firm reported gross collections of €193 million ($205 million) last year — a 3% drop year-over-year — due to lower levels of investments. Its leverage ratio rose to 4.5 times earnings before interest, taxes, depreciation and amortization, compared to 3.8 times Ebitda in 2022. Gross estimated remaining collections were €670 million ($714 million), a 19% year-over-year increase. 

iQera also recognized goodwill impairment of €217 million ($231 million) on its various cash-generating units, attributing it to the increase in interest rates over the year. 

Moody’s Ratings cut iQera’s credit rating one notch on Friday to B3 — six steps into junk — and changed its outlook to negative from stable, citing “weakened solvency” and the company’s constrained investment ability due to its limited liquidity. The ratings firms expects the company to use most of its liquidity to repay the amount due in September.

While iQera has a long track record in the French debt-purchasing market, “the company has been experiencing pressure on key credit metrics — particularly on profitability and interest coverage — and will need to address concentrated debt maturities in 2027,” Moody’s analysts Arif Bekiroglu and Laurie Mayers wrote in the report. 

Read more: The Tough Task Facing Debt Collectors: The Brink

iQera’s woes mirror the problems the broader debt-collection industry is facing. Sweden’s Intrum AB, which funded its expansion by borrowing massively and is now struggling with higher interest rates and lower inflows of “non-performing” loans, is working with advisers on ways to fix its balance sheet.  

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