Mr Cooper Group Inc (COOP)

[kdawg23]

Really the most important item about this story is the fact that they assume the $5 billion will be WAMU's. The downgrades are to be assumed.


Fitch: Washington Mutual Ratings Downgraded and Withdrawn

NEW YORK, Oct 06, 2008 (BUSINESS WIRE) -- Following Washington Mutual, Inc.'s (WM) filing of Chapter 11 bankruptcy, Fitch has downgraded the Issuer Default Ratings (IDR) to 'D' and removed them from Rating Watch Negative. Fitch will withdraw the ratings of WM in approximately 30 days.
In addition, Fitch has assigned recovery ratings to various WM obligations. Creditors of Washington Mutual Bank (WMB) are dependent upon the FDIC, acting as receiver, for any potential recovery. Aside from the $1.9 billion payment that the FDIC received from JPMorgan Chase for WMB's banking operations, the value of any other assets remaining in the estate remains unclear. As a result, Fitch has assigned a recovery rating of 'RR5' to the approximately $10 billion most senior obligations of the bank.

WM had cash of approximately $5 billion when the bank was closed. Those funds had been placed in deposits of Washington Mutual Bank, fsb. WM is still in the process of confirming the status of those deposit funds. Fitch has assumed that ultimately those funds will be returned to WM, although considerable uncertainty remains. Assuming these funds are returned, senior creditors could see a significant recovery. Senior debt outstanding totals approximately $4.9 billion. Fitch assigned a Recovery Rating of 'RR4' to WM's senior debt and 'RR6' to subordinated debt and preferred stock.