Moody’s downgrades RentPath, loans

Moody's Investors Service said it downgraded RentPath, LLC's corporate family rating to B3 from B2 and the revolver and first-lien term loan rating to B2 from B1.

The second-lien term loan rating was downgraded to Caa2 from Caa1.

The outlook was changed to negative from stable.

Moody’s said the downgrade reflects the heightened competitive environment in the digital apartment rental market that has led to substantially higher marketing spending and reduced growth rates. As a result, the agency expects EBITDA to be well below previously expected levels and for leverage to increase above levels consistent for a B2 corporate family rating.

The negative outlook reflects expectations that the competitive environment will remain challenging over the foreseeable future.

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