S&P: Doral on developing watch

Standard & Poor's said it placed its B long-term counterparty credit rating on Doral Financial Corp. on CreditWatch developing.

The rating action follows Doral's announcement that it has entered into an agreement to settle all claims in the consolidated securities class action and shareholder derivative litigation stemming from its accounting restatement, the agency said.

Additionally, Doral has filed its 10-K for 2006, the agency noted, adding that while 2006 resulted in a net loss attributable to common shareholders of $257.2 million, the settlement and filing significantly increase the odds of Doral being able to successfully raise external capital to repay the $625 million in senior notes maturing on July 20, 2007 and the $95 million legal settlement.

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