Moody's might cut PHH

Moody's Investors Service said it placed PHH Corp.'s Ba2 corporate family rating and Ba2 senior unsecured debt rating on review for possible downgrade and affirmed the Not Prime short-term rating.

The action follows PHH's June 2 announcement that it entered into a definitive agreement to sell its Fleet Management Services business, PHH Arval, to Element Financial Corp. for about $1.4 billion in cash; net proceeds after taxes and transaction expenses are expected to be roughly $750 million to $800 million.

Subject to the satisfaction or waiver of various closing conditions, including required regulatory, financing and other contractual consents and amendments, the transaction is expected to close on or before July 31.

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