Fitch recently completed its operational review, which confirmed that PHH Mortgage's servicing operations continue to perform at a level consistent with the prior year. However, the rating actions reflect the uncertainty of market conditions and the sales of PHH Mortgage and its parent, PHH Corporation, senior debt rated 'BBB+/F2' by Fitch and on Rating Watch Evolving.PHH recently warned that its expected sale to General Electric and Blackstone may be in trouble as Blackstone finds itself short purchase funds due to a pullback in the availability of debt financing.
Fitch Puts PHH Mortgage Servicer Ratings on Negative Watch
Fitch Ratings said today that it has placed PHH Mortgage Corporation's servicer ratings on negative watch; the nation's tenth largest servicer is rated 'RPS1-' for servicing prime, Alt-A, and HE/HELOC products. From the press statement: