Amend: Fitch Lowers Countrywide IDR to 'BBB+' & ResCap to 'BB+'; Indymac on Watch Negative.

NEW YORK -- (This is an amended version of a press release issued earlier this morning and includes rating actions on Countrywide Home Loans, which are also being downgraded by Fitch.)

Fitch Ratings has downgraded Countrywide Financial Corp.'s (CFC) long-term Issuer Default Rating (IDR) to 'BBB+' from 'A' and Residential Capital LLC's (ResCap) long-term IDR to 'BB+' from 'BBB'. Additionally, Fitch has placed Indymac Bancorporation Inc. (IMB) on Rating Watch Negative. The rating actions also affect all related subsidiaries of the three mortgage companies. A detailed list of affected ratings follows at the end of this release. Fitch will provide more detailed commentaries on the each of the affected entities shortly.

Fitch's downgrades and Rating Watch Negative placement of these residential mortgage companies reflects the unprecedented disruption in the capital markets, which has severely reduced liquidity for mortgage-centric entities. Fitch's actions reflect the impact on primary liquidity sources and the degree to which the duration of the current market dislocation affects financial flexibility. Sources of financing that Fitch believed would be more resilient have proven less accessible in the current stressed environment. While these actions are primarily prompted by reduced liquidity, other factors such as weakening operating performance and deteriorating asset quality beyond Fitch's expectations are also considerations in today's action. Fitch recognizes efforts to shore up additional sources of liquidity and reduced reliance on confidence-sensitive capital markets financing. Fitch will consider the ability of these entities to increase utilization of more stable and reliable sources of financing afforded by their respective bank charters.

Fitch has downgraded the following ratings:

Countrywide Financial Corp.

--Long-term Issuer Default Rating (IDR) to 'BBB+' from 'A';

--Short-term Issuer Default Rating (IDR) to 'F2' from 'F1';

--Senior debt to 'BBB+' from 'A';

--Subordinated to 'BBB' from 'A-';

--Individual to 'C' from 'B';

--Support floor 'NF'.

Countrywide Bank

--Long-term Issuer Default Rating (IDR) to 'BBB+' from 'A';

--Short-term Issuer Default Rating (IDR) to 'F2' from 'F1';

--Long-term deposits to 'A-' from 'A+';

--Short-term deposits to 'F2' from 'F1';

--Individual to 'B/C' from 'B';

--Support floor 'NF'.

Countrywide Home Loans, Inc.

--Long-term Issuer Default Rating (IDR) to 'BBB+' from 'A';

--Short-term Issuer Default Rating (IDR) to 'F2' from 'F1';

--Senior debt to 'BBB+' from 'A'.

Countrywide Capital I, III, IV, V

--Trust preferred to 'BBB-' from 'A-'.

Fitch has also downgraded and placed the following ratings on Rating Watch Negative:

Residential Capital LLC 

--Long-term Issuer Default Rating (IDR) 'BB+' from 'BBB';

--Short-term Issuer Default Rating (IDR) to 'B' from 'F2';

--Senior debt to 'BB+' from 'BBB';

--Subordinated to 'BB-' from 'BBB-'.

Additionally, Fitch has placed the following ratings on Rating Watch Negative:

Indymac Bancorporation Inc.

--Long-term Issuer Default Rating (IDR) 'BBB-';

--Short-term Issuer Default Rating (IDR) 'F2';

--Individual 'B/C';

--Support floor 'NF'.

Indymac Bank, F.S.B.

--Long-term Issuer Default Rating (IDR) 'BBB-';

--Short-term Issuer Default Rating (IDR) 'F2';

--Long-term deposits 'BBB';

--Short-term deposits 'F2';

--Individual 'B/C';

--Support floor 'NF'.

Indymac Capital Trust I

--Trust preferred 'BB+'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.