BofA may assume all Countrywide debt: CreditSights

NEW YORK (Reuters) - Bank of America Corp (BAC.N) is primed to assume all debt of the former Countrywide Financial Corp, independent research firm CreditSights Inc said, a move that would alleviate worries of Countrywide bondholders.

CreditSights analyst David Hendler issued his assessment on Wednesday, the day after a regulatory filing that showed how the second-largest U.S. bank was treating some of Countrywide's debt obligations. Bank of America bought the largest U.S. mortgage lender last week for about $2.5 billion.

"Countrywide's bank credit facilities have been repaid and its outstanding debt has been assumed by an indirect subsidiary, created and wholly owned by B of A," Hendler wrote. "Our view continues to be that B of A will ultimately honor the outstanding indebtedness from (old) Countrywide, based on our discussion with the company following this filing, as well as our prior analysis."

In late April, Charlotte, North Carolina-based Bank of America had said it was examining options for Countrywide debt, estimated at around $40 billion, and that there was "no assurance" it would redeem, assume or guarantee the debt.

A bank spokesman declined to elaborate on Tuesday's filing.

(Reporting by Jonathan Stempel; Editing by Lisa Von Ahn)