Goldman, Morgan Stanley Units’ Credit Outlooks Boosted by S&PMax Abelson
Standard & Poor’s revised its outlook for the operating units of Goldman Sachs Group Inc. and Morgan Stanley to stable from negative, saying it expects the firms to maintain their “strong market positions.”
“We previously thought that certain regulatory developments, and the Volcker Rule in particular, could limit the ability of these firms to attract and retain clients if the final rules mirrored what was the potentially prohibitive framework of the early proposals,” the credit-rating company said today in a report.
S&P said it affirmed its A rating on the operating subsidiaries of both firms. The outlook for the parent companies remains negative because “extraordinary government support” may be removed, according to the report.