S&P downgrades Realogy, rates loan CC

Standard & Poor's said it lowered Realogy Corp.'s corporate credit rating to CC from CCC, lowered its 10½% senior notes due 2014, senior toggle notes due 2014 and 12 3/8% subordinated notes due 2015 to C from CC and assigned a CC rating with a recovery rating of 6 to the company's proposed $500 million incremental second-lien senior secured term loan facility. The rating on the first-lien senior secured credit facility is CCC+.

All ratings were placed on CreditWatch with negative implications.

These actions follow the company's announcement that it will offer to exchange up to $500 million of the new term loans for the notes. The agency said it views the exchanges as being tantamount to default given the distressed financial condition of the company.

S&P expects that Realogy's corporate credit rating would be at best CCC following the consummation of the exchange transactions, as maximum cash interest savings due to the exchanges would not meaningfully increase Realogy's ability to service its revised capital structure over the intermediate term.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.