Washington Mutual Credit Rating Lowered by Standard & Poor's

Washington Mutual Inc., the savings and loan that put itself up for sale last week, had its credit rating cut by Standard & Poor's because of the increasing likelihood that a sale may not include the whole company.

S&P reduced its rating on Seattle-based WaMu to CCC from BB-, eight levels below investment grade, the company said today. The preferred stock rating was lowered to CC from as the risk of default rises, S&P said.