S&P rates Walter loans B+, B

Standard & Poor's said it assigned a B+ long-term counterparty credit rating to Walter Investment Management Corp., a B+ rating to the company's proposed $500 million first-lien secured term loan and a B rating to its $265 million second-lien senior secured term loan.

The outlook is stable.

All of the ratings depend on the timely closing of the announced acquisition of Green Tree Credit Solutions LLC, S&P said.

The ratings assume that the acquisition will be completed as scheduled early in third quarter of 2011, the agency said. The pending acquisition of Green Tree will facilitate Walter's transition to an asset-light, fee-for-service business model, S&P said.

The acquisition also will allow Walter to grow its fee-based subservicing business, the demand for which will continue to grow rapidly over the next few years as mortgage delinquencies remain high, the agency said.

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