S&P Global Ratings revised the outlook on Mr. Cooper Group Inc. and its subsidiaries, including Nationstar Mortgage LLC and Nationstar Mortgage Holdings Inc., to stable from negative and affirmed the long-term issuer credit rating at B.
The outlook revision takes into account Mr. Cooper Group's improved financial performance and use of excess cash flow to reduce leverage in 2019. Ratings expects debt to EBITDA will fall below 5.0x for the company.
The outlook reflects the rating agency's expectation for leverage of 4.0x to 5.0x, EBITDA interest coverage of 2.5x to 3.0x, and debt to tangible equity of 1.5x to 2.0x. It also reflects Mr. Cooper Group's existing market position in mortgage servicing.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.