Fitch Downgrades PHH Residential Primary Servicer Ratings

Fitch Ratings, New York, has downgraded the U.S. residential primary servicer ratings of PHH Mortgage Corp., Mt. Laurel, N.J. The downgrade reflects a recent downgrade of the issuer default rating of parent company PHH Corp. Fitch is worried about PHH Corp.'s financial flexibility in the increasingly challenged residential mortgage market and the potential impact on PHH Mortgage's servicing operations. "Fitch believes that PHH Mortgage continues to operate an effective servicing and subservicing platform. However, Fitch will continue to monitor PHH's ability to maintain its portfolio performance and loan servicing capabilities in a rising delinquency environment," the rating agency said. Fitch cut PHH's ratings for prime, alt-A and subservicing from "RPS1-" to "RPS2+" and for home equity lines of credit from "RPS 1-" to "RPS2"