trending Market Intelligence /marketintelligence/en/news-insights/trending/-Mg91qo83rgpgqzbCcDHGQ2 content esgSubNav
In This List

S&P downgrades Walter Investment Management on Chapter 11 bankruptcy

Blog

Insight Weekly: Bank boards lag on gender parity; future of office in doubt; US LNG exports leap

Blog

Insight Weekly: Job growth faces hurdles; shale firms sit on cash pile; Africa's lithium future

Podcast

Street Talk | Episode 99 - Higher rates punish bond portfolios, weigh on bank M&A

Blog

Insight Weekly: Loan growth picks up; US-China PE deals fall; France faces winter energy crunch


S&P downgrades Walter Investment Management on Chapter 11 bankruptcy

S&P Global Ratings downgraded its issuer credit rating on Walter Investment Management Corp. to D from CCC- after the company announced that it plans to file for a Chapter 11 bankruptcy.

The agency also lowered its issue-level rating on the company's senior secured term loan and senior unsecured debt to D from CCC- and C, respectively. For the senior secured term loan, S&P said creditors could expect a 55% recovery in a hypothetical default scenario after the company emerges from the current bankruptcy proceedings. Creditors holding senior unsecured notes could expect a 0% recovery in such a scenario.

The ratings actions reflect S&P's view that the bankruptcy means a general default.

Walter Investment expects to complete the restructuring process in the first quarter of 2018 and reduce its outstanding corporate debt by roughly $800 million compared with the outstanding balance as of June 30. The agency does not expect subsidiaries Reverse Mortgage Solutions Inc. and Ditech Financial LLC to file for Chapter 11 bankruptcy.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.