S&P: WaMu unaffected

Standard & Poor's said it that the ratings on Washington Mutual Inc. (A-/negative/A-2) will not be affected by the company's plans to raise capital, cut its common dividend and restructure its home loans business.

The agency said that WaMu's earnings outlook for 2008 is quite dim because credit provisions will be elevated in anticipation of higher loss severities on subprime mortgages, second-lien home equity lines of credit and home equity loans.

S&P noted that the continued negative trends in home prices and the lack of liquidity in the mortgage secondary markets are driving mortgage volumes lower.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.