Fitch: Bear Stearns outlook negative

Fitch Ratings said its outlook for the Bear Stearns Cos. Inc. remains negative following the announcement of the company's earnings for fiscal 2007, which included a loss of $854 million for the latest quarter.

Bear Stearns' full-year income was $233 million, a decline of 89% from fiscal 2006. The agency said its negative outlook anticipated a material departure in performance for Bear Stearns, and the loss for the quarter and the sources of profit were consistent with Fitch's expectations.

Fitch also said these results did not exhibit material contagion into Bear Stearns' other businesses and that the company's solid franchises in global clearing, equity sales and trading and prime brokerage and their earnings contributions are key to maintenance of the current ratings.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.