S&P: Fremont on developing watch

Standard & Poor's said it revised the CreditWatch implications on Fremont General Corp. to developing from negative.

This action follows the announcement of the sale of Fremont's commercial real estate business to iStar Financial Inc. and the proposed minority investment in Fremont by an investor group led by Gerald J. Ford, the agency said, noting that Fremont is also selling its subprime residential real estate business to Ellington Capital Management.

Affected ratings include the company's counterparty credit rating at B-, senior unsecured local currency at B- and preferred stock local currency at CCC- as well as Fremont Investment & Loan's counterparty credit rating at B.

According to S&P, these transactions closing as expected would have a positive impact on Fremont's credit risk profile.

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