I don't believe that is what they said. The report I read today opened with this summary.
" -- E*TRADE Financial Corp. announced a common stock offering and a debt exchange for two issues of holding company notes. -- We lowered the ratings on E*TRADE and the two affected issues and affirmed the ratings on E*TRADE Bank. -- We expect to lower the ratings on E*TRADE and the two debt issues upon completion of the offer."
Today, June 19, 2009 11:30 PM ET S&P downgrades E-Trade to 'CC' From 'CCC-'Marketwatch 11:18 PM ET Financials trade mainly higher, but E-Trade falls Marketwatch 11:14 PM ET S&P: E*Trade Cuts Follow Co's Equity Offering>ETFC Dow Jones 11:07 PM ET S&P Cuts E*TRADE Financial Corp. Rtg To CC From CCC-; Off Watch; Outlk NegDow Jones 11:07 PM ET S&P Takes E*TRADE Bank Off Watch; Outlk NegDow Jones