Standard & Poor's Ratings Services said April 11 that itlowered its long-term issuer credit rating on PHH Corp. to B from B+.

The outlook is negative.

S&P credit analyst Richard Zell said in a news release thatthe revision recognizes the deterioration in PHH's competitive position followingthe company's announcementthat Merrill Lynch plans to move the origination of certain mortgage loans and itssubservicing portfolio to its internal operations over the next month and year,respectively.

The outlook takes into account S&P's view that the strategicoptions PHH is considering could weaken its credit profile. The uncertainty surroundingthe company's fundamental business model also supports the outlook, S&P noted.

S&P Ratings and GlobalMarket Intelligence are owned by McGraw Hill Financial Inc.