NEW YORK (TheStreet) -- Shares of Ocwen Financial Corp. (OCN) are falling by 3.29% to $9.68 in mid-morning trading on Friday, one day after Standard & Poor's Ratings Services placed the struggling mortgage company on watch for a downgrade.
S&P placed Ocwen's residential ratings on CreditWatch negative, The Wall Street Journal reports. The publication added that regulatory and investor scrutiny and some high risk findings following an internal audit is what led S&P to place Ocwen on watch.
This morning Ocwen released a statement responding to the S&P's decision saying it was surprised given the S&P's reasoning as Ocwen believes it has made "significant progress" in resolving past regulatory concerns.
"As previously reported, we are not aware of any unresolved issues with state agencies that would have a material financial impact on the company," Ocwen CEO Ron Faris said in a statement.
"Similarly, we are not aware of, nor anticipating any, material fines, penalties, or settlements and we are not aware of any pending or threatened actions to suspend or revoke any state licenses. We also continue to have frequent and transparent communications with state and federal regulators, Attorneys General, GSE's, and other important stakeholders," Faris continued.
Earlier this week Moody's Investors Service upgraded Ocwen's corporate family, senior bank credit facility, and senior unsecured debt ratings citing an improvement in the company's liquidity, The Journal said.
"We are pleased to see that the strategy we have deployed is working and achieving its objectives," Faris said in the same statement referring to the Moody's upgrade.