Moody’s assigns loanDepot B1

Moody’s Investors Service said it assigned a B1 corporate family and B2 long-term senior unsecured debt ratings to LD Holdings Group, LLC’s (loanDepot).

“The assignment of the B1 corporate family rating reflects loanDepot’s solid franchise in the US residential mortgage market as a top ten originator and top retail originator with a strong focus on technology. The company’s profitability has improved materially in 2020 with the increase in market origination volumes, as a result of the decline in interest rates,” Moody’s said in a press release.

The company plans to sell $400 million senior unsecured bond to refinance the $325 million in unsecured debt maturing in 2022. “The transaction will increase the company’s liquidity benefitting its stand-alone credit assessment and ultimately its creditors,” Moody’s said.

The outlook is positive. The outlook reflects loanDepot’s very strong 2020 performance and the expectation that its investments in building its franchise will result in continued strong financial performance over the next 12-18 months, Moody’s said.

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