S&P cuts Washington Mutual Bank debt to D

Standard & Poor's said it lowered Washington Mutual Bank's counterparty credit rating to R from BBB-, its senior unsecured debt to D from BBB- and its subordinated debt to D from BB+.

These rating actions stem from the bank's placement in FDIC receivership and its simultaneous sale to JPMorgan Chase & Co., S&P said. JPMorgan agreed to acquire all of the bank's deposits but did not acquire its senior and subordinated debt, so those debts reside in the FDIC receivership.

In addition, the agency lowered Washington Mutual, Inc.'s counterparty credit rating and senior unsecured debt ratings to D from CCC and its subordinated debt and preferred stock ratings to D from CC.

As a result of the bank's receivership status, the agency expects the holding company to file for bankruptcy.

© 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.