Fitch Downgrades Countrywide's IDRs

The long-term Issuer Default Ratings of Countrywide Financial Corp., Calabasas, Calif., and its related subsidiaries have been downgraded from BBB-plus to BBB-minus by Fitch Ratings as a result of deteriorating home equity portfolios. Fitch said the move "in no way reflects doubts" about the prospects for completion of Countrywide's acquisition by Bank of America, and the ratings remain on Rating Watch Positive. Various other IDR, debt, and deposit ratings of Countrywide and its affiliates were also downgraded. "Although CFC had expected credit quality to continue to deteriorate, as observed in significantly higher provisions and chargeoffs taken, indications from rated banks in the past few weeks suggest that home equity delinquency rates are rising at a far more rapid pace than many had anticipated," the rating agency said. Fitch can be found online at http://www.fitchratings.com.