Standard & Poor’s may lower H&R Block’s ratings

? Standard & Poor’s Ratings Services may lower H&R Block Inc.’s ratings because the tax preparer may lose access to refund anticipation loans for the fiscal 2011 tax season.

Refund anticipation loans are given to taxpayers that anticipate a tax refund, giving them access to funds earlier.

Shares of the Kansas City, Mo.-based company fell 60 cents, or 5.5 percent, to $10.26 in afternoon trading. The stock hit a fresh 52-week low of $10.13 earlier in the session.

S&P said on Wednesday that the loans are a critical way for H&R Block to draw in and keep customers. By not having these products, the ratings agency said H&R Block’s 2011 earnings and revenue, as well as potential future results, would likely be hurt.

More than 3 million of the company’s customers bought refund anticipation loans in fiscal 2010.

H&R Block disclosed on Friday that it is trying to legally force the U.S. finance unit of HSBC to offer refund anticipation loans for the fiscal 2011 tax season.

S&P put H&R Block’s ratings on negative CreditWatch, including its “BBB/A-2” counterparty ratings. The move also extends to the counterparty ratings of subsidiary Block Financial LLC.

Moody’s Investors Service cut Block Financial’s long-term rating on Wednesday one notch in investment grade status to “Baa2” from “Baa1,” partly on declining tax return volumes over the past two years.

The ratings agency maintained the company’s Prime-2 short-term rating.