Fitch lowers Washington Mutual Bank to junk

Fitch Ratings said it downgraded Washington Mutual Bank's senior and subordinated debt to C and its individual rating to F from D/E.

The agency also lowered Washington Mutual, Inc.'s long-term issuer default rating and senior debt to C from B-, short-term issuer default rating and short-term debt to C from B, subordinated debt to C from CCC and preferred stock to C from CC. The E individual rating, 5 support rating and "No Floor" support floor are unchanged.

The ratings were placed on Rating Watch negative.

The agency said that with most of Washington Mutual Bank's assets now owned by JPMorgan Chase & Co., how much available cash remaining at WaMu's holding company to fund potential recoveries for the senior debtholders remains to be seen.

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