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WaMu's credit rating is cut to just above 'junk' Lender says it is still 'a sound financial institution'
P-I STAFF AND NEWS SERVICES
Washington Mutual Inc. took another hit Friday when Moody's Investors Service cut the thrift's credit rating to a notch above "junk" and said the country's largest savings and loan would need at least $4 billion more than it expected to cover bad mortgages in 2008.
The lower credit rating signals that investing in WaMu carries a higher risk than previously. WaMu reassured the public on Friday that the company is still "a sound financial institution."
Even so, the news sent shares down nearly 13 percent to close at $10.59. Investors have seen the share value plummet in the past 12 months as Seattle-based WaMu has been hammered by its involvement in the mortgage crisis.
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