S&P lowers Countrywide rating |
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Thu, 16 Aug 2007 21:00
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NEW YORK (AP) - Credit-ratings agency Standard & Poor's Ratings Services on Thursday lowered its counterparty credit rating on Countrywide Financial Corp. after the world's largest mortgage lender said it borrowed $11.5 billion from a group of 40 banks to fund loans.S&P lowered the rating to 'A-/A-2' from 'A/A-1.' A ratings downgrade essentially makes it more expensive for a company to borrow money.An 'A' rating is the third highest financial strength rating, while a plus or minus indicates a rating's position within a category.An 'A-1' rating is the highest short-term insurer financial strength rating and 'A-2' is one notch below.S&P affirmed Countrywide Bank fsb and Countrywide Home Loans Inc.'s 'A/A-1' counterparty credit ratings and said in a statement Countrywide Home Loans ongoing integration into Countrywide Bank should improve its funding and liquidity profile.All of Countrywide ratings are 'CreditWatch negative,' meaning there is the possibility of further downgrades.Countrywide's borrowing comes amid a credit crunch that has driven a number of its smaller peers to bankruptcy.Earlier on Thursday, credit rating agency Moody's Investors Service downgraded Countrywide's senior debt rating to 'Baa3' from 'A3,' citing Countrywide's funding problems.Countrywide shares fell $3.16, or 14.8 percent, to $18.13, after earlier reaching a low of $15. The stock has traded between $19.25 and $45.26 during the past year.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Countrywide's debt rating cut to 'Baa3'; retained on negative watch - Moody's 