NEW YORK, July 1 (Reuters) - Two rating agencies on Tuesday raised their debt ratings on Countrywide Financial Corp. after the largest U.S. mortgage lender was acquired by Bank of America.
S&P raised Countrywide's counterparty rating to "AA," the third-highest investment-grade level, from the highest junk level of "BB-plus" to align it with ratings of Bank of America. The upgrade reflects expectations that Bank of America will honor Countrywide's debt, S&P said in a statement.
And Moody's Investors Service upgraded Countrywide's senior debt rating to "Aa2," in line with Bank of America's ratings. The ratings of Charlotte, North Carolina-based Bank of America were affirmed.
Wasn't it just a few months ago they were talking about massive layoffs and downgrades, makes you wonder if the subprime mess was just for real? Now B of A can borrow more.
Pat Gage
http://www.10stepstomoney.com/
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