Fitch cuts WaMu Covered Bond to A2

Moody's Investors Service said it downgraded the rating of the covered bonds issued by WM Covered Bond Program to A2, on review, with direction uncertain from Aa1 under review for possible downgrade.

The downgrade follows the recent downgrades of the senior unsecured debt ratings of Washington Mutual Bank to Baa2 with stable outlook.

The primary concern is the increased potential exposure of Covered Bond investors to the risk of a liquidation of the cover pool in a short-time frame in the event of a sponsor default, Fitch said.

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