Moody's turns Nationstar view to positive

Moody's Investors Service said it revised the outlook to positive from stable and affirmed Nationstar Mortgage Holdings Inc.'s B2 corporate family and backed long-term senior unsecured ratings, as well as Wand Merger Corp.'s B2 backed long-term senior unsecured rating and Nationstar Mortgage LLC's B2 long-term issuer rating. The outlook was revised to positive from stable.

“As Moody's expected, lower interest rates led to an increase in origination volumes in 2020, particularly refinancing, which combined with elevated gain on sale margins, which boosted the company's profitability and allowed it to modestly reduce leverage. The company reported net income of approximately $191 million in the fourth quarter of 2020, which corresponds to an annualized net income/average managed assets ratio of 3.2%, compared to 1.5% for 2019,” the agency said in a press release.

The change in outlook reflects the company's profitability improvements and its enhanced capacity to grow its capitalization levels through increased earnings forecasted to persist over the next 12-18 months, Moody’s said.

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