Moody's confirms New Century

Moody's Investors Service said it has confirmed its B1 senior unsecured debt ratings of New Century Financial Corp., a leading subprime mortgage lender, following the company's announcement on April 5 that its board of directors has voted to pursue a conversion of the company to a REIT.

Moody's said the REIT structure should allow New Century to grow its retained loan portfolio on a more tax efficient basis. New Century is still in the process of finalizing its pro forma legal, capital and financing structure.

The outlook remains stable.

According to Moody's, confirmation of New Century's debt ratings with a stable outlook reflects the firm's continued strong operating performance, as well as Moody's expectation that the standing of the senior unsecured debt of the company should not be impaired by the REIT conversion.

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