S&P cuts State Street

Standard & Poor's said it lowered its ratings on State Street Corp. and subsidiaries one notch, including lowering the counterparty credit rating on State Street to A+/A-1 from AA-/A-1+.

The outlook is negative.

"The rating actions reflect recent mounting evidence of heightened business risk factors illuminated by the recent global market dislocations," said S&P credit analyst Charles D. Rauch.

Specifically, the company's asset-management unit has taken more than $1.2 billion of special charges during the past five quarters, the unrealized losses in the on-balance-sheet bond portfolio and the off-balance-sheet asset-backed commercial paper conduits have widened considerably, and in a recent 8-K filing, new risks have surfaced within its securities lending business, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.