Moody's downgrades Altisource

Moody's Investors Service said it downgraded Altisource Sarl’s corporate family rating and long-term senior secured bank credit facility rating to Caa1 from B3. The ratings remain on review for further downgrade.

The downgrade reflects the expected loss of revenues for downstream services that Altisource provides to Ocwen Loan Servicing, LLC, the operating subsidiary of PHH Mortgage Corp. on the loan portfolios owned by New Residential Investment Corp. (B1 negative).

On Aug. 6, the company reported Ocwen notified it this business would be transferred to another service provider. These revenues would account for about 39% of Altisource’s total revenues in 2020, but do not include the revenues under the cooperative brokerage agreement between Altisource and New Residential, the agency said.

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