Research Update: Altisource Portfolio Solutions S.A. Downgraded To 'CC' From 'CCC+' On Planned Term Loan Amendment; Outlook Negative

On Feb. 3, Altisource Portfolio Solutions S.A. announced an amendment that will extend the maturity of the senior secured term loan to April 2025, with the option to extend to April 2026. Upon closing, we will view the amendment as tantamount to 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' when the transaction closes--given that we consider the credit restructuring

...- On Feb. 3, Altisource Portfolio Solutions S.A. announced an amendment that will extend the maturity of the senior secured term loan to April 2025, with the option to extend to April 2026. - Upon closing, we will view the amendment as tantamount to 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--given that we consider the credit restructuring a distressed exchange....

Research Update