Countrywide CDS out as BofA says no bond guarantee

NEW YORK, July 21 (Reuters) - The cost to insure the debt of Countrywide Financial Corp's home loan unit rose on Monday after Bank of America Corp's (BAC.N: Quote, Profile, Research, Stock Buzz) chief financial officer said the bank doesn't intend to guarantee Countrywide's debt.

Joe Price said on a conference call that "all I can say at this point is we don't intend to guarantee the public debt." He added that he understands the ramifications of not paying at maturity.

Bank of America acquired Countrywide on July 1.

In a filing earlier this month Bank of America provided no guarantees on the debt, though analysts said a new organizational structure indicated the bank is likely to repay Countrywide bondholders at maturity.

The cost to insure the debt of Countrywide Home Loans rose to 235 basis points, or $235,000 per year for five years to insure $10 million in debt, from 220 basis points, according Phoenix Partners Group.

Bank of America's credit default swaps are trading at 112 basis points, according to Phoenix. (Reporting by Karen Brettell; Editing by Tom Hals)