Fitch – WAMU Ratings UNAFFCTED By Capital Raise

Posted on April 8th, 2008 in Daily Stock Market / Economic News - The Real Story

-Well, this just sucks if you are WAMU or their investors. One would think they would check to see if the ratings would improve before you go throw $7 BILLION into a failing bank. This reminds me of the stupid investment in MBIA at $31 per share that is now worth a THIRD of that. You have not heard the end of this story…what is that saying about ‘catching falling knives’? Dummies.    -Mr Mortgage

NEW YORK–(BUSINESS WIRE)--Today’s announcement by Washington Mutual,
Inc. (NYSE: WM) of a series of capital measures, including the sale of
$7 billion in new Tier I capital to a group of institutional investors
and the anticipated reduction in the quarterly common dividend to $0.01
per share, is unlikely to affect the credit ratings of WM, according to
Fitch Ratings.

Concurrent with the new capital, WM also
announced preliminary results for first-quarter 2008 (1Q’08) which
include a sizeable net loss of approximately $1.1 billion, attributable
primarily to a sharp rise in the provision for credit losses to
approximately $3.5 billion, more than half of which will go toward
building the reserve.

Fitch currently rates WM as follows:
-Long-term IDR ‘BBB’;
-Short-term IDR ‘F2’;
-Rating Outlook Negative.

http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20080408005967&newsLang=en

3 Responses to “Fitch – WAMU Ratings UNAFFCTED By Capital Raise”

  1. yeah, but that’s just Fitch. S&P and Moody’s play looser than the Brits. does Egan Jones even bother rating WAMU?

  2. Hey Million – you are my first real commentor. Thanks man. Egan is the most credible for sure…followed by Fitch who got Holy in the past six months. SnP and Moody’s still crooks not to be trusted.

  3. Good points although I disagree on a few. I do respect your opinion however. Read more on the following topics Mortgage watchdog, mortgage advice, mortgage tips, review, low interest rate, fha help, avoid fraud, first time home buyer, cheap mortgage on http://www.brokerpolice.com

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