Moody’s upgrades E*Trade debt

Moody's Investors Service said it upgraded E*Trade Financial Corp.'s senior debt rating to B1 from B2.

E*Trade Bank's bank financial strength rating was upgraded to D from D-, mapping to a baseline credit assessment of ba2, and its long-term deposit rating was upgraded to Ba2 from Ba3.

Moody’s said the upgrades result from E*Trade's improved financial performance and the success of management's efforts to mitigate balance sheet exposures.

The outlook is positive, indicating a higher likelihood of an upward rating change over the medium term. Future rating momentum will depend upon further improvements in, and stability of, financial performance; developments in the management of the bank's loan portfolio as well as the maturation of its wider enterprise risk management framework; and developments in the longer-term strategic direction of the company, including the solidification of its capital policy.

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