The rating incorporates Ocwen Financial Corp.'s strong profit measures, which are a reflection of the higher-yielding asset base at wholly owned subsidiary, Berkeley Federal Bank&Trust FSB. Berkeley Federal's asset mix is weighted toward nonperforming residential mortgages, purchased at significant discount to face value. Ratings also reflect the company's heavy reliance on wholesale funding, which represents a riskier funding strategy. Ocwen is a financial services holding company whose principal activities are conducted through Berkeley Federal. Berkeley Federal generates over 95% of Ocwen's revenues. At March 31, 1996, Ocwen had assets of about $1.9 billion and equity of $142 million. In conjunction with the note offering, a registration statement has been filed with respect to two million shares of Ocwen
