S&P Global Ratings revised its outlook on Mr. Cooper Group Inc. to negative from stable, citing the company's rising leverage.
Ratings also affirmed the long-term issuer credit and unsecured debt ratings on the company, Nationstar Mortgage Holdings Inc. and Nationstar Mortgage LLC at B.
S&P Global Ratings noted that Mr. Cooper Group's debt-to-tangible equity for the six months ended June 30 was 1.95x, compared with 1.05x for the same period in 2018. The negative outlook reflects the rating agency's expectation that the company's debt-to-EBITDA and EBITDA interest coverage will remain around 6.0x and 2.0x, respectively, over the next 12 months.
S&P Global Ratings expects Mr. Cooper Group's debt-to-tangible equity to remain between 2.0x and 2.5x on a sustained basis and that the company will keep its market position as the largest non-bank mortgage servicer.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings.