Bad Paper

Standard & Poor’s lowered the debt rating of Countrywide Financial Corp to junk bond status. S&P cut its long-term rating on Countrywide Financial by 3 notches to BB+from BBB+. The short-term rating was lowered to B from A-2. S&P prompted the lower rating because of disclosures from Bank of American that it may not stand behind some of the Countrywide debt after their planned acquisition of the mortgage giant.