Fitch Notes Realogy, Chesapeake Energy Debt Risk

CHICAGO (AP) — Fitch Ratings said Tuesday that the three issuers of junk debt most in danger of breaching lender requirements are Realogy Corp., Chesapeake Energy Corp. and Frontier Communications Co.

Fitch analyzed the liquidity position of more than 30 of the largest issuers of leveraged loans and high-yield bonds. Most of the companies had adequate near-term liquidity, Fitch found.

But the outlook gets a little cloudier in 2011, when many of the large issuers have to repay debt coming due. Fitch said it is unclear if there will be enough demand for leveraged debt starting in 2011 through 2014 to allow those companies to repay existing debt.

Parsippany, N.J.-based Realogy provides real estate and relocation services, franchising the Century 21 and Coldwell Banker brands, among others. According to CapitalIQ, the company, which was taken private in 2007, has total debt of about $7.32 billion and total assets of $8.43 billion. Cash and short-term investments stood at $388 million at June 30.

A Realogy spokesman said the company's liquidity was materially improved Monday when it refinanced $585 million in loans under a credit revolver and a term loan. The transactions will reduce Realogy's net debt by about $70 million.