S&P: Realogy notes B-, CCC-

Standard & Poor's said it assigned a preliminary rating of B- to Realogy Corp.'s proposed $593 million senior secured first-lien notes due 2020.

The agency also said it assigned a preliminary recovery rating of 1, indicating 90% to 100% expected recovery in a default.

S&P also revised the outlook to developing from positive and affirmed all of its ratings, including its CCC corporate credit rating.

The agency also said it assigned a preliminary rating of CCC- to Realogy's proposed $325 million senior secured notes due 2020 and placed the rating on Realogy's existing notes on CreditWatch with positive implications.

S&P also said it assigned the new debt a preliminary recovery rating of 5, indicating 10% to 30% expected recovery in a default.

Upon closing of the transaction, the agency said it will revise the recovery rating on the 7.875% notes upward to 5 from 6 and will raise the issue-level rating to CCC- from CC.

The outlook revision reflects that S&P could either raise or lower the CCC rating on Realogy, depending on the degree of improvement in the United States residential housing market in 2012 and 2013.

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