S&P Global Ratings affirmed Altisource Portfolio Solutions SA's long-term issuer credit rating at B, expecting the company to enter into a services agreement with New Residential Investment Corp. that "significantly" reduces the risk of it losing legacy Ocwen-related revenues.
The agency also removed the ratings from CreditWatch with negative implications. The outlook is stable.
The two companies recently signed a letter of intent to enter the agreement and the agency expects the eventual agreement to not affect leverage. For 2016, Altisource got 75% of its revenue from Ocwen and 57% of Ocwen's total unpaid principal balance is of loans for which the rights have been sold to New Residential. In August, Altisource reached an agreement with New Residential through which it can receive commissions for each real-estate owned property sold by Altisource and its affiliates on behalf of New Residential.
The stable outlook reflects the company's view that Altisource will keep trying to grow revenues not related to Ocwen.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.