July 11 (Bloomberg) -- Lehman Brothers Holdings Inc.'s record share price decline hasn't damaged the firm's liquidity, funding or client business, Standard & Poor's said.

``The firm's management continues to successfully implement a number of measures -- including strengthening its funding platform, reducing exposure to troubled assets, and increasing capital -- to ensure the maintenance of sound liquidity and the ability to meet funding obligations,'' S&P said today in a statement.

Lehman fell 17 percent today, the most since Bear Stearns Cos. collapsed in March, on speculation home-loan financing companies Freddie Mac and Fannie Mae might fail. The shares dropped $2.87 to $14.43 at 4:08 p.m. in New York Stock Exchange composite trading.

S&P lowered its credit rating on Lehman to A from A+ on June 2, based on expectations that the global credit contraction would continue to weigh on earnings.

``We are concerned that ill-founded and persistent pressures on Lehman's stock unnecessarily prolong what is already a very challenging business environment,'' S&P said today.

To contact the reporter on this story: Steve Dickson in New York at sdickson1@bloomberg.net.

Last Updated: July 11, 2008 16:11 EDT