S&P rates Quicken Loans notes BB

S&P said it affirmed its issuer credit rating on Quicken Loans Inc. at BB. The outlook remains stable.

At the same time, S&P also assigned a BB rating to the company's new $1 billion in senior unsecured notes. The recovery rating on the new senior unsecured notes and existing senior unsecured notes is 3 (50%), reflecting an expectation for meaningful recovery in a default scenario.

“Our rating affirmation follows Quicken Loans' announcement that it plans to raise $1 billion in new senior unsecured notes, potentially in multiple tranches. The new senior unsecured notes will be in addition to the company's existing $1.25 billion senior unsecured notes due 2025,” S&P said in a news release.

“The company plans to distribute $400 million to parent Rock Holdings and use the remaining $600 million, net of fees and expenses, for general corporate purposes.”

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