Rating agency Fitch is reconsidering Countrwide Financial’s (CFC.N) debt rating after a Friedman analyst suggested that Bank of America (BAC) may either restructure–or walk away from–its planned acquisition of the struggling mortgage lender. Fitch currently rates CFC with its lowest investment grade rating of “BBB-minus,” but will reexamine the rating after the precise structure of the BAC deal becomes clear. Fitch:
While Fitch continues to believe that BAC’s acquisition of CFC will likely close, today’s rating action considers uncertainty over the transaction’s final structure… Given CFC’s operating difficulties and the stressed environment, CFC’s ratings would likely be downgraded absent the capital and liquidity support already provided by BAC, and more likely still if the merger is not consumed [sic].
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.