CALABASAS, Calif., Aug. 2 /PRNewswire-FirstCall/ -- Countrywide
Financial Corporation (NYSE: CFC) commented today on the continuing
adequacy of its funding liquidity and the strength of its financial
condition.
"Countrywide has longstanding and time-tested funding liquidity
contingency planning," said Eric P. Sieracki, Chief Financial Officer.
"These planning protocols were designed to encompass a wide variety of
conditions, including recent secondary market volatility. Our liquidity
planning proved highly effective earlier during 2007 when market concerns
first arose about subprime lending, and remains so today. We place major
emphasis on the adequacy, reliability and diversity of our funding sources.
It is important to note that short-term liquidity is used exclusively to
fund our highest credit quality, most liquid assets.
"Our mortgage company has significant short-term funding liquidity
cushions and is supplemented by the ample liquidity sources of our bank,"
Sieracki continued. "In fact, we have almost $50 billion of highly-reliable
short-term funding liquidity available as a cushion today. It is important
to note that the Company has experienced no disruption in financing its
ongoing daily operations, including placement of commercial paper.
"Countrywide's financial condition remains strong, as evidenced by over
$14 billion of net worth, significant excess capital and our strong
investment grade credit ratings," Sieracki concluded. "Two independent
credit rating agencies, Moody's Investors Service and Standard & Poor's
Rating Service, this week re-affirmed their ratings and stable outlook for
Countrywide, its bank and its mortgage company."
About Countrywide
Founded in 1969, Countrywide Financial Corporation is a diversified
financial services provider and a member of the S&P 500, Forbes 2000 and
Fortune 500. Through its family of companies, Countrywide originates,
purchases, securitizes, sells, and services prime and nonprime loans;
provides loan closing services such as credit reports, appraisals and flood
determinations; offers banking services which include depository and home
loan products; conducts fixed income securities underwriting and trading
activities; provides property, life and casualty insurance; and manages a
captive mortgage reinsurance company. For more information about the
Company, visit Countrywide's website at http://www.countrywide.com.
This Press Release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended,
regarding management's beliefs, estimates, projections, and assumptions
with respect to, among other things, the Company's future operations,
business plans and strategies, as well as industry and market conditions,
all of which are subject to change. Actual results and operations for any
future period may vary materially from those projected herein and from past
results discussed herein. Factors which could cause actual results to
differ materially from historical results or those anticipated include, but
are not limited to: increased cost of debt as a result of a ratings
downgrade or otherwise; reduced access to corporate debt markets;
unforeseen cash or capital requirements; a reduction in secondary mortgage
market investor demand; increased credit losses due to downward trends in
the economy and in the real estate market; increases in the delinquency
rates of borrowers; competitive and general economic conditions in each of
our business segments such as slower or negative home price appreciation;
reduction in government support of homeownership; the level and volatility
of interest rates; changes in interest rate paths; the judgments and
assumptions made by management regarding accounting estimates and related
matters; the ability of management to effectively implement the Company's
strategies; and other risks noted in documents filed by the Company with
the Securities and Exchange Commission from time to time. Words like
"believe," "expect," "anticipate," "promise," "plan," and other expressions
or words of similar meanings, as well as future or conditional verbs such
as "will," "would," "should," "could," or "may" are generally intended to
identify forward-looking statements. The Company undertakes no obligation
to publicly update or revise any forward-looking statements or any other
information contained herein.
SOURCE Countrywide Financial Corporation
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Related links:
http://www.countrywide.com/
CONTACT:
Investors, David Bigelow or Lisa Riordan,
+1-818-225-3550, or Media Line, 1-800-796-8448
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