S&P: Freedom Mortgage view to negative

S&P said it revised the outlook on Freedom Mortgage Corp. to negative from stable.

The agency also affirmed the B issuer credit rating and the BB- issue rating on its senior secured term loan due 2022. The 1 recovery rating on the senior secured term loan is unchanged, indicating an expectation for very high recovery (90%-100%; rounded estimate: 95%) in the event of a default.

"The outlook revision to negative follows Freedom's announcement that it plans to raise $250 million of incremental debt by upsizing its recently issued senior secured term loan (SSTL) backed by the cash flow of Ginnie Mae mortgage servicing rights (MSRs) and advances," S&P credit analyst Stephen Lynch said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.