Moody's may cut WaMu debt into junk territory

Reuters ^ | 2008-07-23

[rabscuttle385]

NEW YORK, July 22 (Reuters) - Moody's Investors Service on Tuesday said it may cut its ratings on Washington Mutual Inc.'s senior unsecured debt into junk territory, after the largest U.S. savings and loan posted a $3.33 billion second-quarter loss.

The net loss equaled $6.58 per share as souring mortgages forced it to set aside more money for loan losses.

"WaMu's asset quality issues primarily relate to the company's residential mortgage portfolio, but deterioration is also being experienced in the company's credit card portfolio," Moody's said in a statement.

"To establish the necessary provisioning for this asset quality deterioration, Moody's expects WaMu to record sizable quarterly losses through 2009," the rating agency said.

[rabscuttle385]

Freepers with deposit accounts at WaMu that contain uninsured balances, please be very careful. WM was down almost twenty percent in this morning's markets.

[floozy22]

I have a WAMU credit card with a small balance. Gonna pay off & not use it.

[rabscuttle385]

I have a WaMu card too, but I’m not using it. Their BT offers as of late have been awful.

[sf4dubya]

They bought out my old credit card a few years ago (Providian).

I’m proud to say that we have zero credit card balances. We only use the American Express, and we have to pay that balance off at the end of every month.