S&P Downgrades Washington Mutual

S&P slashed Washington Mutual's rating to "BBB" from "BBB+." The rating still implies Washington Mutual's ability to repay its debts is "lower-medium grade."

...

S&P said it now believes the downturn in mortgage credit will be more severe than anticipated. The severity of losses on home loans will be higher than the ratings agency thought as housing remains weak, especially in key markets like California and Florida.

...

Based in Seattle, Washington Mutual runs more than 2,250 branches and has a loan portfolio of $227 billion, mostly real estate loans.