Moody's lowers Realogy

Moody's Investors Service said it lowered the credit and liquidity ratings of Realogy Corp. following its recent announcement that it is offering up to $500 million aggregate principal amount of new second-lien incremental term loans to eligible holders of its senior and subordinated notes.

Moody's said it lowered the corporate family rating to Caa2 from Caa1, the probability of default rating to Ca from Caa1, the speculative-grade liquidity rating to SGL-4 from SGL-3 and changed the outlook to negative from stable.

The proposed second-lien term loans are not rated by Moody's.

According to the agency, the downgrade of the corporate family rating to Caa2 and the negative outlook reflect deteriorating macroeconomic conditions which should continue to pressure residential home sales volumes and pricing over the next year, significant quarterly earning declines during 2008 and modest covenant cushions.

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