Wachovia issued to “A + / A-1″ from creditwatch, a stable perspective to PS & S & P lowered its credit rating of Wachovia to “A + / A-1″ to “AA-/A-1 + ‘. In the same time, reduces long-term credit to Wachovia Bank NA to “AA-” from “AA”. “The downgrade reflects the higher than expected loss, forecasts Wachovia residential district of Pick-a-payment portfolio of mortgages, which are weakened, the operating results for the short term. The one and a half have Golden West have taken a levy on Wachovia performance gains, but that era is coming to an end. “The company has announced on June 30, the option is that the output of adjustable mortgage business and is now focused on aggressive lending Pick-a-payment of mortgages. Wachovia under 122 billion U.S. dollars of Pick-a - Payment portfolio, 71 billion U.S. dollars or 58% of this portfolio is the difficulty in California residential real estate market, and the entire portfolio is very important and 24% of the loans.