Abstract: On Sept. 24, 2008, Standard&Poor's Ratings Services lowered its counterparty credit rating on Washington Mutual Inc. (WAMU) to CCC/C' from 'BB-/B'. At the same time we affirmed the 'BBB-/A-3' counterparty credit rating on Washington Mutual Bank because of the breadth of its retail franchise. The downgrade was due to the increased likelihood that a potential sale of the company may not involve the whole company, which increases the risk of default for holding company creditors. We also lowered the preferred stock rating to 'CC' from 'B-' to reflect the incremental risk of default of these securities. The outlook remains negative. According to press reports, banking regulators could be intervening in the potential sale of WAMU. Depending on how

Brief Excerpt: RESEARCH Ratings Definitions Research Update: Washington Mutual Inc. Rating Cut To '###' From '##-'; Bank Subsidiary '###-/A-3' Affirmed Publication date: 24-Sep-2008 Primary Credit Analyst: Victoria Wagner, New York (1) 212-438-7406;...

Report Type: Research Update
Ticker: WM
Issuer: Washington Mutual, Inc.
GICS: Thrifts & Mortgage Finance (40102010)
Sector: Asset-Backed Commercial Paper, Asset-Backed Securities, Financial Institutions, Global Issuers, Public Finance, Residential MBS, Structured Finance
Country: United States
Region: United States
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 S&P Credit Research
S&P Credit Research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.