S&P Global Ratings has affirmed its B- long-term issuer credit rating on Ocwen Financial Corp.
The ratings action follows Ocwen's announcement of an agreement to acquire PHH Corp.
The outlook remains negative, which reflects legacy-Ocwen regulatory risk as well as integration risks from the PHH acquisition, the rating agency said.
S&P said it expects that Ocwen will continue to defend itself against litigation and allegations made by the Consumer Financial Protection Bureau and various state regulators until these issues are resolved.
The rating agency also expects that revenues from Ocwen's servicing business will continue to run off as mortgage servicing rights amortize and that the company will work over the next one to two years to integrate the PHH and Ocwen servicing platforms.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.
