Fitch cuts Fremont General view to negative

Fitch Ratings said it revised the outlook of Fremont General Corp. and Fremont Investment & Loan to negative from stable and affirmed Freemont General's B+ long-term senior debt rating; the BB- long-term issuer default, B short-term issuer, C/D individual and 5 support ratings of both companies; and Fremont General Financing I's B- preferred securities.

The agency said the revised outlook reflects the current difficult market environment that Freemont General faces, particularly the company's exposure to the subprime residential mortgage sector. While the company has taken meaningful steps to curb mortgage repurchase requests and related provisions, Fitch believes that profitability pressure will continue in the near term.

Fitch said it believes that Freemont General possesses adequate liquidity and capital to weather the company's recent challenges and noted the good performance of Freemont Investment & Loan's commercial real estate business.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.