Standard & Poor's (NYSE:MHP) Ratings Services said it has lowered Realogy Corp's corporate credit rating to 'B' from 'B+' to reflect its expectation that the company will experience lower than previously expected cash flow generation and weakening credit measures over the intermediate-term resulting from a lengthening downturn in the US residential real estate market.Realogy issued $875M of 12.375% (!) eight year notes earliers this year. Much more on Realogy and its parent Apollo Management.'While there is nothing stable about current transaction and pricing trends in the U.S. residential real estate market, we believe Realogy has available liquidity sources adequate to withstand the current downturn in the cycle. As a result, we are unlikely to lower the rating further over the intermediate term,' the rating agency said.
