Countrywide BondsTrade at Junk Level

The Wall Street Journal reports:

Until the past couple of weeks, Countrywide Financial Corp.'s strategy for coping with a turbulent mortgage market was in line with its pugnacious style: grab more market share. As weaker rivals shed staff or closed down, Countrywide hired 2,000 additional people to make loans in this year's first half.

Now, with investors in a near panic over rising defaults on mortgages, Countrywide has more immediate priorities. It must shore up its own finances and reassure investors that it has plenty of cash to survive the storm. The company's stock fell 2.8% Friday after it warned late Thursday that "unprecedented disruptions" in credit markets would have an "unknown" effect on its business. Countrywide's debt is trading at junk levels, despite investment-grade ratings.

Sometimes Moody's and S&P are slow in downgrading.