Standard & Poor's has downgraded the debt of Lomas Financial Corp. and a subsidiary, citing concerns over a swap arrangement between the mortgage banking company and Lehman Brothers.

Standard & Poor's is cutting its rating on $140 million of Lomas senior debt to B-minus from B-plus and slashing the rating of $340 million of Lomas Mortgage USA debt to B-plus from BB-plus, the agency announced.

The ratings were reduced because the company recently announced a continuing consolidated loss, and the sale of Lomas Financial no longer appears imminent, Standard & Poor's said.

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