S&P lifts Ocwen, loans

Standard & Poor's said it raised its issuer credit rating on Ocwen Financial Corp. to B+ from B.

The outlook is stable.

The agency also raised its rating on Ocwen's first-lien term loans to B+ from B.

Ocwen has completed several large purchases of mortgage servicing rights over the past two years, bringing the total unpaid principal balance of mortgages serviced to $435 billion as of Sept. 30, from $102 billion at year-end 2011.

"The upgrades reflects that, in our view, the company has now demonstrated a track record of not only onboarding MSRs without any material operational miscues, but also of generating enough EBITDA from these partially debt-financed purchases to maintain its conservative leverage, as measured by debt to EBITDA," S&P credit analyst Stephen Lynch said in a news release.

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