S&P: Realogy view negative

Standard & Poor's said it revised the outlook on Realogy Corp. to negative from stable and affirmed the B corporate credit rating.

The outlook revision reflects a significantly lower expectation for EBITDA generation in 2008 than previously anticipated, the agency said, as well as the resultant narrowing of the EBITDA cushion in the company's senior secured credit facilities leverage covenant.

According to S&P, the rating reflects Realogy's highly leveraged capital structure, thin EBITDA coverage of interest expense and reduced cash flow generating ability as a result of the housing downturn and the close of the company's $9 billion leveraged buyout by Apollo Management LP in April 2007.

The rating is based on the expectation that Realogy has sufficient available liquidity sources to withstand the current downturn, the agency noted.

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