Fitch Downgrades Nationstar in Several Categories

Commercial

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Fitch Ratings has downgraded Nationstar Mortgage’s ratings in several servicer categories.

Residential primary servicer ratings for the company’s alt-A products were downgraded to RPS3+ from RPS2- and residential primary servicer ratings for the company’s subprime product were also downgraded to RPS3+ from RPS2-.

Nationstar’s residential special servicer rating was downgraded to RSS3+ from RSS2- and Fitch downgraded the company’s residential master servicer rating to RMS2 from RMS2+. Fitch gave a negative outlook to every rating except for the residential master rating, which remains stable.

Several affiliates of Fortress Investment Group own Nationstar, but Fitch graded the company on a standalone basis.

The downgrades are primarily due to the assessment of Nationstar as a standalone entity and to stresses observed in the company’s operation, which Fitch believes are attributable to its high growth rate in recent years, the ratings agency said in a press release.

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