An analyst at Stifel Nicolaus & Co. downgraded Countrywide Financial Corp. to a “hold” from a “buy” on the expectation that the downward trend in the credit market will continue. In a report to clients, Stifel Nicolaus wrote: “Recent developments in the mortgage industry have significantly increased the risks in the sector.” A number of pundits, including Countrywide CEO Angelo Mozilo, have said that they expect the downward trend in the housing sector to get worse before it gets better. Mozilo, addressing a banking and financial services conference last month, projected that 2007 will be what he called “a transitional environment.” Shares in Countrywide began sliding following the downgrade, and were trading down 2.78 percent at $39.90 by mid-day EST.
