S&P lifts four U.S. banks to positive view

Standard & Poor’s said it revised the outlooks to positive from stable on the operating subsidiaries of four banks: Bank of America Corp., Citigroup Inc., the Goldman Sachs Group Inc. and Morgan Stanley.

The outlook revisions, which were done in conjunction with a review of the credit profiles of the eight U.S. highly systemically important financial institutions, are based on a positive view of the fundamental improvements these banks have achieved in recent years, S&P said.

The agency also said it affirmed the ratings on these banks and their subsidiaries.

The outlooks on the holding companies remain negative, S&P added.

The positive outlooks also incorporate the possibility that these companies will have sufficient additional loss-absorbing capacity in place, which could lead the agency to raise the ratings when it reviews government support in the United States later this year.

The outlooks on the operating subsidiaries of the other four highly systemically important banks, Bank of New York Mellon, JPMorgan Chase & Co., State Street Corp. and Wells Fargo & Co. remain stable.

The stable outlooks on these banks already reflect a view that their strong fundamentals are fully reflected in their current ratings, S&P said.

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