S&P upgrades Realogy, rates revolver, loan BB-

Standard & Poor's said it raised the corporate credit rating on Realogy Corp. to B+ from B, along with all of its issue-level ratings by one notch.

The outlook is stable.

S&P also said it assigned a BB- rating to the company's proposed senior secured credit facilities consisting of a $600 million revolver due 2018 and a $1.82 billion term loan due 2020.

Also assigned was a recovery rating of 2, indicating 70% to 90% expected default recovery.

The proceeds will be used to refinance its existing revolver and term loan facilities.

The one-notch upgrade reflects an expected increase in operating performance at Realogy in 2013, S&P said, and an expectation that total lease adjusted debt-to-EBITDA will improve to the low-6x range.

The agency also said that its economists are increasingly confident that the U.S. residential housing market is experiencing a sustained recovery in terms of existing home sales and price improvement.

© 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.