S&P trims Anywhere Real Estate

S&P said it downgraded its ratings for Anywhere Real Estate Group LLC to B+ from BB-, its senior secured debt to BB from BB+ and its senior unsecured debt to B from B+. The 1 recovery rating on the first-lien term loan and 5 recovery rating on the senior unsecured debt are unchanged.

“In 2022, average 30-year mortgage rates in the U.S. rose by over 300 basis points while median home prices rose for both luxury and total existing homes, slowing home sale transaction volume by 14%. As a result, Anywhere's total revenue fell 13% in 2022,” S&P said in a press release.

The company’s leverage rose to 5.5x in 2022 and the agency said it expects leverage to climb higher in 2023. Cost cuts are expected to offset some of the declines in volume.

The outlook is negative.

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