S&P cuts RE/MAX

S&P said it lowered all its ratings for RE/MAX LLC, including the issuer rating to BB- from BB.

“We think persistently low 2024 home sale volumes and high mortgage rates will prevent RE/MAX from generating enough earnings to deleverage. Though its U.S. agent attrition is stabilizing in the back half of 2023, home sale transactions remain stubbornly low, leading us to believe RE/MAX cannot gain enough operating leverage to increase EBITDA such that adjusted leverage would be commensurate with our prior rating,” the agency said in a statement.

S&P said it forecasts RE/MAX will post leverage above 4x for at least another year.

The outlook is stable.

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