S&P ups E*Trade outlook to positive

Standard & Poor's said it revised E*Trade Financial Corp.'s outlook to positive from stable and raised E*Trade Bank's counterparty credit ratings to BB+/B from BB/B. E*Trade's B+ counterparty credit rating was affirmed and E*Trade Bank's outlook remains stable.

The outlook change on E*Trade reflects its improvements in franchise strength and fundamental performance driven by organic growth and acquisitions, the agency said.

The upgrade on E*Trade Bank is due to its strong core earnings, improved asset and liability management, strong credit quality and growing net interest margin.

S&P said E*Trade's ratings are supported by strong operating performance, a diversified business model and adequate liquidity. Offsets to these strengths are E*Trade's financial leverage (due to a high level of intangible assets) and double leverage.

© 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.