S&P rates Saxon Capital debt B

Standard & Poor's said it assigned B+/B counterparty credit ratings to Saxon Capital Inc. and a B rating to the company's senior unsecured debt. The outlook is stable.

S&P said the ratings reflect the risks associated with the company's focus on subprime residential mortgages, reliance on third-party sources for mortgage loan production, its REIT status and its encumbered balance sheet.

These concerns are offset to some degree by the company's relative longevity and senior management's experience in dealing with difficult funding markets and interest rate and economic cycles, the agency said.

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