S&P cuts Goldman, Lehman rating outlook to negative
Goldman Sachs Group and smaller rival Lehman Brothers Holdings had their credit-rating outlook cut to negative by Standard & Poor’s, which said Wall Street banks’ profits may fall as much as 30% in the coming year.
NEW YORK: Goldman Sachs Group and smaller rival Lehman Brothers Holdings had their credit-rating outlook cut to negative by Standard & Poor���s, which said Wall Street banks��� profits may fall as much as 30% in the coming year. ���Our current expectation is that net revenue could decline��� at least 20% for independent securities firms, S&P said on Saturday. S&P affirmed its long-term credit rating of AA- for Goldman and A+ for Lehman.
The Federal Reserve���s decision last week to open a lending facility for brokers and provide financial support for JPMorgan Chase���s emergency takeover of Bear Stearns ���mitigates liquidity concerns,��� S&P said. ���Nonetheless, we see some possibility, were there to be persisting capital markets turmoil and sharply weakening economic conditions, that financial performance could deteriorate significantly.���
The Federal Reserve���s decision last week to open a lending facility for brokers and provide financial support for JPMorgan Chase���s emergency takeover of Bear Stearns ���mitigates liquidity concerns,��� S&P said. ���Nonetheless, we see some possibility, were there to be persisting capital markets turmoil and sharply weakening economic conditions, that financial performance could deteriorate significantly.���
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