Moody's affirmed Ocwen Loan Servicing LLC's senior secured term loan rating of B2 and senior secured debt rating of Caa2.
The rating agency also assigned a corporate family rating of Caa1 and a negative outlook to PHH Mortgage Corp., and withdrew the Caa1 corporate family rating of Ocwen Financial Corp. and the relevant stable outlook.
Moody's said it affirmed Ocwen Loan Servicing's ratings based on its stand-alone assessment of Caa1. PHH Mortgage's corporate family rating is derived from its Caa1 stand-alone assessment, which the rating agency calculates based on Ocwen Financial's consolidated financials, reflecting the firm's weak capital level, currently constrained profitability and challenges to building a resilient business model.
The negative outlook on PHH Mortgage is based on Ocwen Financial's weakening capitalization, resulting from net losses due to changes in the fair value of the company's mortgage servicing rights, and weak core profitability.
