NEW YORK (AP) - Standard & Poor's Ratings Services cut Washington Mutual Inc.'s credit ratings a day after the savings and loan reported a $1.87 billion fourth-quarter loss.
S&P sent WaMu one notch lower to a 'BBB+' and said its ratings outlook is negative. That means the agency thinks it may cut the rating further in the next six to 18 months. The rating is still investment-grade.
'The weak earnings for 2007 and the prospects for similar performance in 2008 are beyond the tolerance for the 'A' rating on the bank,' said Standard & Poor's credit analyst Victoria Wagner.
Washington Mutual lost $67 million in 2007 on $11.11 billion in revenue, compared with a profit of $3.56 billion on $13.68 billion in revenue in 2006.
Credit ratings indicate a company's ability to repay debt. They are used in large part to set the terms of borrowing.
(This version CORRECTS that WaMu lost $67 million in 2007, not $67 billion.)
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