S&P rates American Home Mortgage B+

Standard & Poor's said it assigned a B+ long-term counterparty credit rating on American Home Mortgage Servicing Inc.

The outlook is stable.

"Our ratings on AHMSI are based on its short operating history, concentration in subprime mortgage servicing, dependence on wholesale funding and operational risks associated with the firm's rapid growth," S&P analyst Jeff Zaun said in a statement.

"Good earnings, adequate leverage and favorable industry conditions partly offset these weaknesses. The support that AHMSI has received from its private equity sponsor and strong elements of its enterprise risk management also support the rating."

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