S&P revises Quicken Loans view to negative

S&P said it revised its outlook on Quicken Loans Inc. to negative from stable and affirmed the BB issuer credit and unsecured debt ratings.

The recovery rating on the debt remains 3, reflecting an expectation of meaningful recovery (50%-70%, rounded estimate: 65%) in a simulated default scenario.

“The negative outlook reflects our expectation that, over the next 12 months, Quicken's net debt to EBITDA could remain above 3.0x if revenues from originations or cash balances meaningfully decrease, or if expenses meaningfully increase,” S&P said in a news release.

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