S&P may downgrade Fremont General

Standard & Poor's said it placed its B+ long-term counterparty credit rating on Fremont General Corp. on CreditWatch with negative implications.

This action follows Fremont's announcement that it will delay the release of its fourth-quarter and full-year 2006 results. At this point there is a lack of clarity surrounding the reasons for the delay, the agency said. S&P's concerns are heightened due to the possible effects that a negative event could have on the company given the weak state of the subprime mortgage market.

The agency said it will continue to monitor the situation and provide an update as details become available. A downgrade of one or more notches is possible, S&P said.

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