Ratings agency positive about Avanti's market position

Ratings agency S&P has kept Avanti Finance's rating at the BB and noted the non-bank lender is becoming less reliant on bank funding.

"Avanti Finance continues to diversify its funding base away from its primary bank provider. As a result, we revised upward our assessment of the company's funding," S&P says.

The company has reduced its reliance on a single bank funding provider, to about 30% as of June 30, from about 80% in 2015.

"We expect Avanti to further diversify its funding. The company's reliance on funding from a single bank could drop to about 20% over the next six months. As such, we now see the company's funding profile as consistent with more highly rated peers."