Fitch assigns United Shore BB-, notes B+

Fitch Ratings said it assigned an expected long-term issuer default rating of BB- to United Shore Financial Services, LLC. Concurrently, Fitch gave an expected rating of B+ to United Shore’s proposed unsecured debt issuance.

“The expected IDR reflects United Shore Financial Services, LLC’s (United Wholesale) solid franchise, with leading market share in the wholesale U.S. residential mortgage segment, solid asset quality performance in the servicing portfolio, strong earnings generation, improving capitalization, sufficient earnings coverage of interest expenses, a sufficiently robust and integrated technology platform, and experienced management team with extensive industry background,” Fitch said in a press release.

Fitch’s expected rating on the notes senior unsecured debt is one notch below the long-term IDR, given its subordination to secured debt in the capital structure, a limited pool of unencumbered assets and weaker relative recovery prospects in a stressed scenario, the agency said.

Proceeds are expected to be used for general corporate purposes and to fund a distribution to shareholders.

The outlook is stable. The outlook reflects the expectation United Shore will maintain enough liquidity to address potential increases in servicing advances due to consumer mortgage forbearance programs in the event of a second wave of the pandemic, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.