RITM (Rithm Capital Corp.) S&P Raises Credit Rating to B+
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S&P Global Ratings raised Rithm Capital Corp.’s issuer credit rating to B+ from B on September 25, 2026, citing greater business diversification. The outlook is stable.
S&P also raised its rating on Rithm’s senior unsecured notes to B from B-. The agency said Rithm has expanded its asset-management, residential transitional lending and commercial real estate operations while mortgage subsidiary Newrez has maintained stable earnings.
Why the upgrade matters
The higher ratings are a positive credit signal, but both remain below investment grade. S&P said non-mortgage operations represented about 33% of both stockholders’ equity and total revenue as of June 30, compared with 9% and 13%, respectively, at year-end 2022.
That broader earnings base can reduce reliance on mortgage finance. It does not remove funding risk. S&P expects debt to adjusted total equity of 4.5 to 6.5 times and said Rithm’s heavy use of secured financing continues to constrain the rating.
The stable outlook assumes continued scale, diversified earnings and adequate liquidity. S&P could lower the rating if leverage exceeds 6.5 times, funding facilities become difficult to renew or secured funding increases margin-call risk. A further upgrade is unlikely within 12 months. Over a longer period, S&P said leverage below 4.5 times and a larger unsecured-debt share could support another upgrade.
Sources
This article is general information, not personalized investment advice. Fly High Investing may hold securities discussed in this article.