Fitch Affirms Countrywide's IDR at 'A'; Outlook Stable

Business Wire, May 30, 2007

NEW YORK -- Fitch Ratings has affirmed Countrywide Financial Corporation (NYSE: CFC) and related subsidiaries' long-term Issuer Default Ratings (IDRs) of 'A' and short-term Issuer Rating of 'F1'. Approximately $34.0 billion in debt and $57.5 billion in deposits are affected by this rating action. A complete list of ratings follows this announcement.

The ratings for CFC reflect the company's leadership in the U.S. mortgage banking industry, good financial performance amid extreme sector weakness and diverse funding profile augmented by deposit growth at Countrywide Bank FSB. CFC's macro-hedge strategy, or the benefits of mortgage production and servicing combined, has delivered consistent operating performance over multiple cycles. Fallout in the subprime sector and overall market conditions caused higher than expected credit costs and unanticipated mark-to-market write-downs in the first quarter of 2007. Fitch believes that market conditions for 2007 will continue to be challenging, pressuring operating performance. However, Fitch believes CFC will be a long term beneficiary of eventual market rationalization, particularly in the subprime arena. For the subprime sector, the competitive landscape has changed dramatically with several monoline mortgage companies exiting the market.

Future rating actions will be based on CFC's success in executing its growth strategy while employing effective risk management and maintaining appropriate risk-adjusted capital levels. Positive factors include successful navigation through difficult market conditions which include, withstanding the housing market malaise, absorbing potential subprime aftershocks and managing through record-high adjustable-rate mortgage (ARM) resets. However, further deterioration of credit performance, aggressive capital management or negative consequences from regulatory and legislative scrutiny could pressure ratings.

The company is in the early stages of integrating Countrywide Home Loans, Inc. (CHL) into the Countrywide Bank to lower funding costs and reduce reliance on unsecured debt markets. Although the company remains committed to maintaining credit metrics throughout this transition, Fitch will monitor the structural impact on CFC and CHL. Recognizing that changes in credit metrics may be temporary and transitional, rating actions on CFC and CHL may not be warranted. However, if differing credit profiles are more permanent in nature, Fitch would consider specific rating actions to be applied to the affected entities.

Fitch affirms the following ratings with a Stable Outlook:

Countrywide Financial Corporation

--Long-term Issuer Default Rating (IDR) at 'A';

--Short-term Issuer Rating at 'F1';

--Long-term senior debt at 'A';

--Subordinated debt at 'A-';

--Short-term debt rating at 'F1';

--Individual Rating at 'B';

--Support at '5';

--Support Floor at 'NF'.

Countrywide Home Loans, Inc.

--Long-term Issuer Default Rating (IDR) at 'A';

--Short-term Issuer Rating at 'F1';

--Senior debt at 'A'

--Short-term debt at 'F1'.

Countrywide Bank, FSB

--Long-term Issuer Default Rating (IDR) at 'A';

--Short-term issuer at 'F1';

--Long-term senior debt at 'A'

--Long-term deposits at 'A '

--Short-term deposit at 'F1'

--Short-term debt at 'F1'

--Individual at 'B'

--Support at '5';

--Support Floor at 'NF'.

Countrywide Capital I

Countrywide Capital III

Countrywide Capital IV

Countrywide Capital V

--Trust preferred at 'A-';

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.