Thread: S&P cuts Bank of America to sell from hold

S&P cuts Bank of America to sell from hold
By Riley McDermid
Last update: 1:24 p.m. EDT June 20, 2008
NEW YORK (MarketWatch) -- Standard & Poor's Equity Research on Friday downgraded shares of Bank of America Corp. (BAC) to sell from hold amid worries about the mortgage portfolio the bank will inherit when it acquires lender Countrywide Financial Corp. (CFC) on July 1. "We take unfavorable note of the large Countrywide option-adjustable rate mortgage portfolio that Bank of America will inherit, since we believe this portfolio has yet to be stress tested," S&P said in its action. The agency also said it expects BofA to "significantly" increase its loss provisions to reflect a weakening U.S. consumer and predicted a dividend cut. S&P cut earnings estimates for 2008 for the bank by 51 cents to $2.16 and reduced its target price by $9 to $24.

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Bank of America
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Bank of Illegals.