Fitch sees rating Freedom notes B+

Fitch Ratings said it expects to assign a B+ rating to Freedom Mortgage Holdings LLC's planned sale of $450 million of senior unsecured notes. Freedom Holdings is the new parent and holding company of Freedom Mortgage Corp. (Freedom). The fixed rate of interest and maturity date will be determined at the time of issuance.

“The expected rating is equalized with the ratings assigned to Freedom Holdings' existing senior unsecured debt, as the new notes will rank equally in the capital structure. The senior unsecured debt rating is one-notch below Freedom and Freedom Holdings' long-term issuer default ratings (IDRs; BB-/stable), given the subordination to senior secured debt in the capital structure, reflecting weaker recovery prospects in a stress scenario,” Fitch said in a press release.

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