S&P rates Quicken facility BB

S&P said it assigned a BB rating to Quicken Loans LLC’s proposed unsecured revolver for up to $1 billion. Last week, the company filed an S-1 with the Securities and Exchange Commission for an initial public offering.

S&P also affirmed Quicken’s BB issuer and unsecured debt ratings.

“Quicken reported a year-over-year increase of over 240% in adjusted EBITDA for 2019, mainly as a result of substantial growth in production as homeowners refinanced their mortgages in record numbers. We expect for the company to continue to have record origination volume again in 2020 as consumers refinance their mortgages and take advantage of the low-interest-rate environment,” the agency said in a press release.

S&P said it forecasts leverage as measured by net debt to EBITDA below 2x for 2020 even if the company fully draws down on its new facility.

The outlook is stable.

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