S&P lowers Realogy

Standard & Poor's said it lowered its corporate credit rating for Realogy Corp. to SD from CC.

This action follows the company's announcement that it has closed a $515 million second-lien term loan due 2017 and is using $150 million of the issuance to exchange for about $220 million in face value of its senior toggle notes due 2014, the agency said.

According to S&P, Realogy expects to upsize the total issuance of the second-lien term loan, which was rated C with a recovery rating of 6 on Sept. 24, to $650 million.

At the same time, the agency said it lowered its issue-level rating on the senior toggle notes to D from C.

All other outstanding ratings on the company were affirmed.

S&P said that it views Realogy's exchange of $150 million of its new second-lien term loan for about $220 million of its senior toggle notes at less than par as tantamount to default given the distressed financial condition of the company.

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