S&P changes Quicken Loans view to stable

S&P said it changed the outlook on Quicken Loans Inc. to stable from negative.

“We are revising our outlook on Quicken to stable from negative due to lower-than-expected leverage. Quicken reported a year-over-year increase of over 150% in adjusted EBITDA for 2019 year to date, mainly as a result of substantial growth in production as homeowners refinanced their mortgages in record numbers. As a result, we are forecasting leverage as measured by net debt to EBITDA below 2.0x for 2019,” said S&P in a press release.

S&P also affirmed its BB ratings on Quicken and unsecured debt. The recovery rating is unchanged at 3. A 3 recovery rating indicates S&P’s estimate of meaningful recovery (50%-70%, rounded estimate: 55%) in a simulated default scenario.

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