Moody’s raises Ocwen Financial, debt

Moody's Investors Service said it upgraded Ocwen Financial Corp.’s corporate family rating to B2 from B3 senior secured bank credit facility to B2 from B3 and senior unsecured debt to B3 from Caa1.

The outlook is stable.

Moody’s said the actions follow the company's recently announced mortgage servicing rights sales, which will provide the company significant liquidity. The company stated its intention to use the cash generated from the sales to deleverage, if so, the agency estimates that the cash from the announced and proposed 2015 sales would be sufficient to fully repay the company's outstanding senior secured term loan.

Furthermore, Moody’s estimates that cash plus unencumbered servicer advances would provide the company with sufficient liquidity to fully repay the company's unsecured debt, if it so elected. In addition, the company's receipt of an unqualified audit opinion is a positive development.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.