Friday, September 26, 2008

Fitch: Recovery Prospects Dim for WaMu Debtholders; IDR Downgraded to 'C' (WM)

From MarketWatch:
With most of Washington Mutual Bank's assets now owned by JP Morgan Chase (JPM), how much available cash remaining at WaMu's holding company to fund potential recoveries for the senior debt holders remains to be seen, according to Fitch Ratings, which downgraded WaMu's Issuer Default Rating (IDR) to 'C' from 'B-', reflecting the likelihood of default. The ratings are also placed on Rating Watch Negative.

A complete list of affected ratings follows the end of the press release.
Last night, the Office of Thrift Supervision closed Washington Mutual Bank (WMB), citing significant deposit outflows since Sept. 15, 2008. The FDIC was named receiver. Most of the bank's assets, including its loans, all of its deposits and select other liabilities were purchased from the FDIC by JPMorgan Chase Bank, NA last night>>>MUCH MORE