S&P raises Bear Stearns

Standard & Poor's said it raised its debt and counterparty credit ratings on Bear Stearns to AA-/A-1+ and removed them from CreditWatch developing where they were placed on March 17.

The outlook is stable.

The agency said that the rating action recognizes the strengthened immediate guarantee by JPMorgan Chase & Co. of all of Bear Stearns' counterparty obligations, adding that JPMorgan will also assume Bear Stearns' debt obligations upon completion of the acquisition.

In S&P's view, the price increase and the anticipated increase in the amount of shares controlled by JPMorgan raise the probability that the deal will be completed.

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