Countrywide Financial Corp.’s ability to raise money and increase deposits in its banking subsidiary could be hampered if its credit ratings should be downgraded below investment grade, the mortgage lender said in a regulatory filing, the Associated Press reports.
Calabasas-based Countrywide, the nation’s largest mortgage lender, said further reductions to its credit ratings would severely limit its ability to access public debt markets, according to a quarterly report filed late Friday with the Securities and Exchange Commission.
In addition, up to $5.5 billion in deposits at Countrywide Bank could be “subject to placement with another bank” if its ratings were cut further, the company said.
As of Nov. 7, the three major credit agencies – Standard & Poor’s, Moody’s Investors Service and Fitch Ratings – had placed the company on some form of negative outlook, according to the filing.
The company said it took steps to boost its access to funds, including $9.2 billion in cash by the end of the third quarter.
Countrywide issued the latest disclosures as part of an expanded account of third-quarter financial results.
Last month, the company reported a loss of $1.2 billion during the quarter ended Sept. 30 – its first quarterly loss in 25 years.
