S&P Cuts Ocwen Financial (OCN) to 'B', Outlook Negative

Standard & Poor's Ratings Services lowered its long-term issuer credit rating to 'B' from 'B+' on OCWEN Financial Corp. (NYSE: OCN). The outlook is negative. In addition, we lowered our ratings to 'B' from 'B+' on OCWEN's senior secured debt and to 'B-' from 'B' on its senior unsecured debt.

"The rating action reflects our view of increasing regulatory scrutiny over the company's servicing practices and today's announcement that the company erroneously dated correspondence to some borrowers who were facing foreclosure," said Standard & Poor's credit analyst Stephen Lynch. "We believe the culmination of events and ongoing investigations will limit the company's ability to acquire servicing assets," Mr. Lynch added.

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