S&P affirms Merrill Lynch, stable view

Standard & Poor's said it affirmed its A+/A-1 counterparty credit ratings and stable outlook on Merrill Lynch & Co. Inc.

The affirmation reflects the strengths of the company's franchises in institutional securities, retail brokerage and investment management, S&P said.

S&P said the earnings also are well diversified due to high contribution from retail brokerage unit, Global Private Client.

Somewhat offsetting diversification is the lower profitability of the retail brokerage as a business, compared to institutional securities and investment management, S&P said.

Other concerns are the unresolved Enron lawsuit and the possibility that capital adequacy may be reduced through stock repurchases or product expansion into riskier activities, S&P noted.

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