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Realogy Group LLC Proposed Secured Credit Facility Rated ‘BB+’ (Recovery: 1); Unsecured Notes Rating Lowered To ‘B’

          NEW YORK (S&P Global Ratings) Jan. 17, 2018--S&P Global Ratings today assigned its 'BB+' issue-level rating and '1' recovery rating to Madison, N.J.-based residential real estate franchising and brokerage company Realogy Group LLC's proposed senior secured credit facility. The credit facility consists of a $1.4 billion revolver due 2023; and a $750 million term loan A due 2023; and a $1.08 billion term loan B due 2025. The proposed revolver commitment is $350 million higher than the company's existing $1.050 billion revolver, and the proposed term loan A facility combines the company's existing two tranches of term loan A debt into one tranche. In addition, the refinancing transaction pushes out maturity dates for the revolver, the term loan A and the term loan B. The company will use the proceeds of the new facilities to refinance its existing secured facilities. The '1' recovery rating reflects our expectation for very high recovery (90% to 100%; rounded estimate: 95%) for lenders in the event of a payment default. In addition, we lowered the issue-level rating to 'B' from 'B+' on the company's senior unsecured debt (consisting of three series including $450 million of notes due April 2019, $550 million of notes due December 2021, and $500 million of notes due 2023). We revised the recovery rating on the company's unsecured debt to '6' from '5'. The '6' recovery rating reflects our expectation for negligible recovery (0% to 10%; rounded estimate: 5%) for lenders in the event of a payment default. We took these rating actions on this debt because the incremental revolver commitment adds secured debt in the capital structure under our hypothetical default assumptions and impairs recovery prospects for unsecured lenders. 
          Our 'BB-' corporate credit rating on Realogy is unchanged. The rating outlook is stable. For the complete corporate credit rating rationale, please see our summary analysis on Realogy, to be published as soon as practical following this release.