Fitch rates Finance of America B+, notes B

Fitch Ratings said it gave an expected long-term issuer default ratings of B+ to Finance of America Cos. Inc., Finance of America Equity Capital LLC, and Finance of America Funding LLC. The outlook is stable.

Concurrently, Fitch assigned an expected rating of B/RR5 to Finance of America Funding’s proposed $350 million of senior unsecured debt issuance.

Proceeds will be used to fund a distribution to owners and for general corporate purposes.

The IDR reflects FOA’s moderate franchise and historical track record as a U.S. nonbank mortgage originator and lender and experienced senior management team with extensive industry background, Fitch said.

“The expected rating on the senior unsecured debt of B/RR5 is one notch below the long-term IDR, reflecting its subordination to secured debt in the capital structure and limited pool of unencumbered assets, which translates into weaker relative recovery prospects in a stressed scenario,” Fitch said in a press release.

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