S&P boosts E*Trade

Standard & Poor's said it raised its counterparty credit rating on E*Trade Financial Corp. to BB- from B+ and affirmed its BB+/B counterparty credit rating on E*Trade Bank.

The outlooks are stable.

The agency said that the rating action on E*Trade reflects its improved franchise strength and fundamental performance driven by diversification of revenue through the leverage of its business model and its integrated, cost effective operating platform. E*

E*Trade has successfully morphed into a diversified financial institution from a discount broker and this diversification away from more volatile trading-based revenue and toward recurring revenue mitigates the adverse affects of trading seasonality, competitive trading price cuts and market downturns, according to S&P.

© 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.