Research Update: Altisource Portfolio Solutions S.A. Downgraded To 'CC' From 'CCC+' On Announced Debt Exchange; Outlook Negative

On Dec. 16, Altisource Portfolio Solutions S.A. announced a debt exchange that would lower the principal balance of its senior secured term loan by about $58 million, reduce the interest paid on its term loan, and extend the term loan's maturity to April 2030. Upon closing, we will view the exchange as a distressed exchange that offers debtholders less value than originally promised. As a result, we lowered our issuer credit rating on the company to 'CC' from 'CCC+' and our issue rating on the senior secured term loan to 'C' from 'CCC-'. The negative outlook reflects our expectation that we will lower the issuer credit rating on Altisource to 'SD' and the senior secured term loan rating to 'D'

...- On Dec. 16, Altisource Portfolio Solutions S.A. announced a debt exchange that would lower the principal balance of its senior secured term loan by about $58 million, reduce the interest paid on its term loan, and extend the term loan's maturity to April 2030. - Upon closing, we will view the exchange as a distressed exchange that offers debtholders less value than originally promised. - As a result, we lowered our issuer credit rating on the company to '##' from '###+' and our issue rating on the senior secured term loan to 'C' from '###-'. - The negative outlook reflects our expectation that we will lower the issuer credit rating on Altisource to '##' and the senior secured term loan rating to 'D' when the transaction closes, because we would consider the transaction as a distressed exchange....

Research Update