S&P removes Realogy from watch

Standard & Poor's said it raised Realogy Corp.'s corporate credit rating to CCC from CC and removed the rating from CreditWatch, where it was placed with positive implications on Jan. 18.

The outlook is positive.

S&P said it raised the issue-level rating on the company's non-extended senior secured credit facilities to B- and revised the recovery rating on to 1, indicating the expectation of very high (90% to 100%) recovery in the event of a payment default.

S&P also raised the issue-level rating on the company's existing second-lien term loan, senior unsecured notes and subordinated notes to CC from C. The recovery rating remains at 6, indicating the expectation of negligible (0% to 10%) recovery in the event of a payment default.

S&P assigned Realogy's extending senior secured credit facilities, consisting of a $363 million revolving credit facility due April 10, 2016, $1.819 billion term loan due Oct. 10, 2016 and $173 million synthetic letter of credit due Oct. 10, 2016, a B- issue-level rating with a recovery rating of 1 and its $700 million of senior secured notes due 2019 a CC issue-level rating with a recovery rating of 6.

The company used note proceeds to prepay extended term loan balances under the first-lien credit facility.

The ratings reflect Realogy's improved liquidity profile following the closing of the transactions, which decreased the level of senior secured first-lien debt in the company's capital structure, S&P said.

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