Moody's assigns Realogy notes Caa1

Moody's Investors Service said it rated Realogy Group LLC's proposed senior notes due 2019 at Caa1.

All other debt ratings, including the B2 corporate family rating and the stable outlook, are unaffected.

The LGD assessment for certain bonds was revised to reflect the better expected recovery for those bonds because of the higher proportion of unsecured debt compared to secured debt following sale of the proposed senior notes due 2019.

Net cash proceeds after financing related fees and expenses will be used to repay a portion of the currently outstanding senior secured notes and associated call premiums.

"The no-call structure of the proposed new debt suggests that Realogy's goal of deleveraging its balance sheet may be accomplished only slowly, as this transaction lowers interest expense and increases earnings without reducing debt and lowering risk," Moody's senior analyst Edmond DeForest said in a news release.

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