Tue Jul 1, 2008 4:30pm BST
NEW YORK, July 1 (Reuters) - Standard & Poor's on Tuesday raised its ratings on Countrywide Financial Corp. after the largest U.S. mortgage lender was acquired by Bank of America (BAC.N: Quote, Profile, Research).
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"
Norton's comment: in the big picture, this doesnt mean much at this point. Banks and investment firms are still showing junk securitized assets at face value when they should be written down. They are leaking this news out in small portions...10 billion dollars at a time so as to not panic the market and loss all the faith of the consumer. Watch for more to come.
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