S&P raises Ocwen outlook

Standard & Poor's raised its outlook on Ocwen Financial Corp. to stable from negative and confirmed its ratings including its corporate credit at B-.

S&P said the action was taken in recognition of Ocwen's reduced exposure to non-core assets, continued good results in the servicing business, and the reduction in fixed expenses from the disposition of high cost debt.

These actions have led to positive earnings the past two quarters after losses in nine of the previous 10 quarters, S&P noted.

The firm has maintained good capital levels and cash position for the rating.

The rating incorporates the risks of the continued realization of a shift in business strategy, as well as the remnants of the company's higher-risk loan and investment portfolios that remain on the balance sheet, S&P added.

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