S&P Global Ratings lowered its long-term issuer creditrating on Walter InvestmentManagement Corp. to B from B+.

The outlook is negative.

S&P said it expects Walter Investment's tangible equity tocontinue to decline when the company reports second-quarter results because alower 30-year mortgage rate will invariably lead to more write-downs on thecompany's mortgage servicing rights.

The outlook is based on S&P's belief that the company'sability to sell assets to repurchase debt and lower leverage will remain anongoing challenge in a low interest rate environment.

S&P Global Ratingsand S&P Global Market Intelligence are owned by S&P Global Inc.