Research Update: Altisource Outlook Revised To Negative; 'B' Issuer Rating Affirmed; Senior Secured Notes Downgraded To 'B' - S&P Global Ratings’ Credit Research

Research Update: Altisource Outlook Revised To Negative; 'B' Issuer Rating Affirmed; Senior Secured Notes Downgraded To 'B'

Research Update: Altisource Outlook Revised To Negative; 'B' Issuer Rating Affirmed; Senior Secured Notes Downgraded To 'B' - S&P Global Ratings’ Credit Research
Research Update: Altisource Outlook Revised To Negative; 'B' Issuer Rating Affirmed; Senior Secured Notes Downgraded To 'B'
Published Jun 17, 2020
6 pages (2228 words) — Published Jun 17, 2020
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

We expect the moratorium on foreclosures and the stay-at-home policies from COVID-19 to hurt Altisource's 2020 operating results. We also believe recovery expectations in a hypothetical default scenario are weakening because of structural declines in EBITDA coupled with lower maintenance capital expenditures and fixed charges. We are revising our outlook on Altisource Portfolio Solutions to negative from stable and affirming our 'B' issuer credit rating. We are also lowering our rating on the company's senior secured notes to 'B' from 'B+'. The negative outlook reflects our expectation that debt to adjusted EBITDA could sustain above 4x as a result of the moratorium on foreclosures and the stay-at-home policies due to COVID-19. On June 17, 2020, S&P Global Ratings revised its

  
Brief Excerpt:

...- We expect the moratorium on foreclosures and the stay-at-home policies from COVID-19 to hurt Altisource's 2020 operating results. - We also believe recovery expectations in a hypothetical default scenario are weakening because of structural declines in EBITDA coupled with lower maintenance capital expenditures and fixed charges. - We are revising our outlook on Altisource Portfolio Solutions to negative from stable and affirming our 'B' issuer credit rating. We are also lowering our rating on the company's senior secured notes to 'B' from 'B+'. - The negative outlook reflects our expectation that debt to adjusted EBITDA could sustain above 4x as a result of the moratorium on foreclosures and the stay-at-home policies due to COVID-19....

  
Report Type:

Research Update

Issuer
Altisource Portfolio Solutions S.A.
Sector
Global Issuers
Country
Luxembourg
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Altisource Outlook Revised To Negative; 'B' Issuer Rating Affirmed; Senior Secured Notes Downgraded To 'B'" Jun 17, 2020. Alacra Store. May 09, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Altisource-Outlook-Revised-To-Negative-B-Issuer-Rating-Affirmed-Senior-Secured-Notes-Downgraded-To-B-2463912>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Altisource Outlook Revised To Negative; 'B' Issuer Rating Affirmed; Senior Secured Notes Downgraded To 'B' Jun 17, 2020. New York, NY: Alacra Store. Retrieved May 09, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Altisource-Outlook-Revised-To-Negative-B-Issuer-Rating-Affirmed-Senior-Secured-Notes-Downgraded-To-B-2463912>
  
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