Moody’s assigns Nationstar notes B2

Moody’s Investors Service said it assigned a B2 rating to Nationstar Mortgage Holdings Inc.’s proposed $600 million senior unsecured notes due in February 2027. The rating outlook is negative.

Moody’s said it rated the senior unsecured notes B2 based on Nationstar’s B2 corporate credit profile, the notes’ ranking and terms, and the strength of the notes’ asset coverage. The key terms of the loan are largely consistent with Nationstar Mortgage LLC’s senior unsecured notes.

Nationstar Mortgage LLC is a wholly owned operating subsidiary of Nationstar Mortgage Holdings Inc., which is a wholly owned subsidiary of Mr. Cooper Group Inc. Proceeds will be used to fund the redemption of the company’s outstanding senior unsecured notes due 2021 and 2022.

Nationstar’s B2 corporate family rating reflects the company’s position in the U.S. residential mortgage servicing market, constrained profitability and weakened capitalization. It also takes into consideration the risks associated with the firm’s growth of its servicing portfolio, which are mitigated by its solid track record of acquiring and integrating residential mortgage servicing assets.

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