S&P cuts New Century's debt rating to "Default"

NEW YORK, March 12 (Reuters) - Standard & Poor's on Monday cut its counterparty credit rating on New Century Financial Corp. to "D," or default, citing notices of default from several lenders based on violations of financing arrangements.

New Century NEW.N, the largest independent U.S. subprime mortgage lender, said on Monday its lenders plan to halt financing, pushing the company closer to bankruptcy amid dwindling cash and $8.4 billion in obligations that could come due immediately. For details see [ID:nN12324075].

New Century's inability to meet the notes that are immediately payable is tantamount to a general default, S&P said. It cut New Century's rating to "D" from "CC."