Standard & Poor's has now come to Lehman Brothers' defense, saying that the counterparty credit rating of Lehman remains high. S&P gives Lehman a counterparty credit risk rating of "A/A-."
S&P said the persistent and ongoing pressure on Lehman's stock price in recent days has not hurt Lehman's liquidity, funding and client business. But the rating firm expressed concerns that these pressures complicate the operating environment for Lehman, which was downgraded in June.
"We are concerned that ill-founded and persistent pressures on Lehman's stock unnecessarily prolong what is already a very challenging business environment," it said.
The Friday before Bear Stearns needed to be bailed out by the Federal Reserve arranging its acquisition by JP Morgan, S&P lowered Bear Stearns counterparty credit rating to BBB from A, and its short-term rating to A-3 from A-1.
S&P says Lehman counterparty credit profile solid [Reuters]