Moody's downgraded Walter Investment Management Corp.'s long-term corporate family rating to Caa2 from Caa1.
The outlook remains negative.
The agency downgraded the company as it faces a growing risk of debt restructuring due to continued losses. The agency believes that the likelihood that the company will be able to refinance its corporate debt is limited, unless it is restructured. The earliest maturity of the company's corporate debt is November 2019.
The outlook reflects "limited paths to profitability," which increase the risk of a debt restructuring.