Fitch Ratings has assigned a BBB- rating to Rocket Mortgage's recent debt issuance, emphasizing the stable financial position due to an upstream guarantee and anticipated refinancing of existing debt. Analysts predict Rocket's leverages to be manageable post-acquisitions of Redfin and Mr. Cooper. On a parallel track, PennyMac priced $100 million in senior notes, aimed at bolstering its investment strategies including mortgage servicing rights and funding correspondent lending, reflecting a proactive approach amidst fluctuating credit spreads and market conditions.
Fitch Ratings assigned the notes a BBB- rating, indicating a stable credit position and no significant impact on Rocket's leverage profile from recent acquisitions.
Rocket Mortgage's proposed $1.75 billion acquisition of Redfin and $9.4 billion deal for Mr. Cooper aims to refinance debt, with a favorable leverage estimate.
PennyMac's recent $100 million senior notes issuance due in 2030 reflects its strategic focus on mortgage servicing rights and securing funding for various lending strategies.
Analysts forecast a comfortable cashflow coverage for Rocket's bondholders, supported by anticipated cost reductions in 2Q earnings, despite stable revenue expectations.
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