Debt buyer and lender Credit Corp has reported a “sustained deterioration in collection conditions” in its US business, foreshadowed an impairment of the value of its US purchased debt ledger assets and slashed its earnings guidance. The company announced yesterday that “increased US repayment plan delinquency”, which was a feature of its June quarter performance, has persisted through the September quarter, prompting a re-assessment of the outlook for collections on US PDL assets. The anticipated impairment, which is likely to be included in the December half results, would represent around 14 per cent of the carrying value of US PDL assets and would reduce net profit by around A$45 million. In August, the company issued guidance for the 2023/24 year, with net profit expected to be in the range of $90 million to $100 million. The revised guidance is for net profit of $35 million to $45 million. The US debt buying market is not the only trouble spot for Credit Corp. The company has previously reported that conditions in the local debt buying market are weak.  In its 2022/23 financial report it said: “Supply in the Australian and New Zealand debt buying market remains constrained. While some one-off purchases were secured late in the year, the 2023/34 investment pipeline remains modest. A further contraction in segment earnings is expected in 2023/24.” The company reported net profit of $91.2 million for the year to June – down 9.4 per cent from $100.7 million in 2021/22. The one positive the company is taking from the present situation is that reduced market pricing should support the viability of continued purchasing.  Credit Corp chief executive Thomas Beregi said in a statement: “Prices at which the 2023/24 US investment pipeline has been secured should deliver Credit Corp’s target return in present conditions.”