On Feb. 20, Altisource Portfolio Solutions S.A. completed its debt exchange, which lowered the principal balance of its senior debt by about $60 million, reduced the interest paid on its senior secured term loan, and extended the term loan's maturity to April 2030. We 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 'SD' from 'CC' and our issue rating on the senior secured term loan to 'D' from 'C'. Furthermore, without the transaction, we believe Altisource would have had difficulty repaying the exchanged term loan due April 2025 given the company's strained operating performance and limited liquidity, even if it
