S&P affirms PHH

Standard & Poor's said it affirmed its BBB-/A-3 counterparty credit rating on PHH Corp.

The rating was removed from CreditWatch with developing implications, where it was placed on Oct. 18, the agency said.

The outlook is negative.

According to S&P, the affirmation follows PHH's statement that it is likely to operate its two businesses - residential mortgage origination and servicing and fleet management - under the existing corporate umbrella for the foreseeable future.

The ratings on PHH reflect the company's good niche market positions in its two businesses, strong asset quality and adequate funding flexibility, S&P said, adding that negative ratings factors include PHH's limited business diversity as well as customer concentration and volatile and broadly subpar profitability in its mortgage business.

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