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|WaMu Responds to Standard & Poor's Actions|
Notes Bank Remains Investment Grade at All Agencies
SEATTLE--(BUSINESS WIRE)--Sept. 15, 2008--In response to today's ratings action by Standard & Poor's, Washington Mutual, Inc. (NYSE:WM) issued the following statement:
"The change in Standard & Poor's ratings for Washington Mutual announced today brings S&P's ratings in line with those announced last week by Moody's. However, it's important to note that S&P attributed its action to worsening market conditions, and not to any material change in the evaluation of Washington Mutual's financial condition. S&P's ratings for Washington Mutual Bank remain investment grade.
None of Washington Mutual, Inc.'s or Washington Mutual Bank's unsecured debt is subject to ratings-based financial covenants that would result in acceleration or early maturity events or defaults. The company does not expect the impact of S&P's actions on borrowings, collateral or margin requirements to be material."
WaMu's capital levels at quarter end are expected to remain significantly above the levels required of "well capitalized" institutions. The company's outlook for expected credit losses is unchanged. Please see WaMu's September 12 Form 8-K filing for more information.
In light of recent events, WaMu also noted in the financial services industry that it has de minimis trading exposure to Lehman Brothers Holdings and no trading exposure to AIG. The company has not experienced any significant trading losses related to counterparty defaults or disruptions and does not believe that ongoing market disruptions will result in any such losses. All derivative trading relationships enjoy the benefit of bilateral collateral arrangements designed to fully protect each party in the event of default. The company maintains derivative and repo lines with a wide range of banks and dealers, with a maximum exposure to any one institution of $40 million.
Important Cautionary Statements
The foregoing statement may contain forward-looking statements and should be read in conjunction with the company's September 11 press release attached to the company current report on Form 8-K reference above.
CONTACT: Washington Mutual, Inc. Media: Derek Aney, 206-500-6094 (Seattle) 212-326-6075 (New York) email@example.com or Investor Relations: Alan Magleby, 206-500-4148 (Seattle) 212-702-6955 (New York) firstname.lastname@example.org SOURCE: Washington Mutual, Inc.