S&P affirms Goldman Sachs, Lehman

Standard & Poor's said it affirmed its ratings on Goldman Sachs Group Inc. (holding company, AA-/A-1+) and Lehman Brothers Holdings Inc. (holding company, A+/A-1).

At the same time, S&P said it revised its outlook on these two companies to negative from stable.

The favorable effect of the Federal Reserve's unprecedented support for the U.S. broker-dealers mitigates liquidity concerns by instilling confidence in the capital markets, the agency said.

Nevertheless, S&P said it believes that negative rating outlooks are broadly appropriate for the independent securities firms, reflecting the potential for a more substantial decline in profitability from capital market activities.

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