Moody’s drops Walter Investment, debt

Moody's Investors Service said it downgraded Walter Investment Management Corp.’s corporate family rating to Caa1 from B3 and senior unsecured rating to Caa2 from Caa1.

The senior secured bank credit facility was affirmed at B3.

The outlook is negative.

Moody’s said the actions reflect the decline in the company's tangible common equity along with the company's continued weak profitability. The agency expects that near-term profitability will remain constrained and its ability to significantly reduce its financial leverage will be limited.

The B3 rating of the senior secured bank credit facility and the Caa2 rating of the senior unsecured debt reflects Moody’s notching analysis which incorporates their priority of claim and strength of asset coverage.

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