Countrywide Debt Off Rating Watch

Fitch Ratings has removed the senior unsecured debt ratings of Countrywide Financial Corp. and Countrywide Home Loans Inc. from Rating Watch Negative.However, the rating outlook is negative, Fitch said. The rating agency placed Countrywide's debt, rated A, on review in February, saying that falling interest rates can substantially reduce the value of assets such as mortgage servicing rights. Fitch attributed the affirmation of the ratings to "the company's additional capital support, strong origination and servicing platforms, declining capitalization of mortgage servicing rights in relation to capital, and continued strength in operating results." On the other hand, the negative outlook "reflects CFC's relatively more aggressive MSR valuations compared to industry peers and the need for improvement in the processes and procedures to effectively manage the complex process of hedging the MSR asset," the rating agency said. Fitch can be found online at http://www.fitchratings.com.