Morgan Stanley, Merrill, Lehman Ratings Cut by S&P
June 2 (Bloomberg) -- Morgan Stanley, Merrill Lynch & Co. and Lehman Brothers Holdings Inc. had their credit ratings lowered by Standard & Poor's on expectations the securities firms will be forced again to write down the value of their assets.
Morgan Stanley, the second-biggest U.S. securities firm by market value, was lowered to A+ from AA-, S&P said today in a report. Merrill Lynch, the third-biggest firm, was cut to A from A+, as was Lehman Brothers, the fourth-biggest firm. The outlook on all three New York-based firms remains negative, S&P said.
``The negative actions reflect prospects of continued weakness in the investment banking business and the potential for more write-offs, though not of the magnitude of those of the past few quarters,'' Tanya Azarchs, an S&P analyst, said today in a statement.
S&P also said today that it revised its outlooks on Bank of America Corp. and JPMorgan Chase & Co. to negative. Citigroup Inc. was taken off review for a downgrade and given a negative outlook, while Wachovia Corp. was placed on review for a downgrade.
``The outlooks on the large financial institutions sector in the U.S. are now predominantly negative,'' S&P said in today's statement.
ΒLOOMBERG
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