S&P affirms Washington Mutual

Standard & Poor's said that it affirmed its outstanding ratings on Washington Mutual Inc., including its A-/A-2 counterparty credit ratings, and Washington Mutual Bank FA, including its A/A-1 counterparty credit ratings, in light of the company's announced plan to acquire Providian Financial Corp.

The acquisition will be financed with a combination of common stock and cash.

S&P said that while the acquisition presents a new business line to Washington Mutual's credit profile, Providian's credit card operations are considered small relative to Washington Mutual's asset base, core funding profile, and capital base. Also, Washington Mutual will merge Providian into one of its bank subsidiaries, improving the credit card operations funding profile and growth opportunities as it becomes part of Washington Mutual's extensive retail banking network.

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