Realogy Assigned Negative Outlook

A negative rating outlook has been assigned to Realogy Corp. by Moody's Investors Service because of "continued weakness in the residential real estate market."Moody's also affirmed Realogy's Baa2 long-term ratings and assigned a Baa2 rating to its proposed $800 million offering of senior notes. In explaining the negative outlook, the rating agency cited expectations of double-digit volume declines in home sales and modest price declines in the second half of 2006, as well as mid-single-digit volume declines and modest price declines in 2007. The ratings could be downgraded if profitability continues to decline sharply in 2007 because of falling home sales or prices, or a "material increase" in leverage caused by a large acquisition, Moody's said. Realogy is one of the largest real estate service companies in the world, Moody's said. The rating agency can be found online at http://www.moodys.com.