S&P affirms Ocwen on debt exchange

S&P said it affirmed the B rating on Ocwen Financial Corp., along with the BB- rating on its senior secured term loan and B rating on its senior unsecured debt.

Ocwen Financial recently asked its existing senior debtholders to exchange their 6 5/8% senior notes due 2019 for 8 3/8% senior secured second-lien notes due 2022 issued by Ocwen Loan Servicing and guaranteed by Ocwen Financial, the agency said.

The company’s debt-to-EBITDA ratio is expected to be higher than 5x in 2016 due to lower EBITDA, S&P said.

The stable outlook reflects a view that much of the regulatory risk that threatened the viability of Ocwen's business model has abated and that the requirements of the settlements reached with various regulatory bodies will continue to improve its operational and risk management framework, the agency said.

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