S&P lowers Discover to stable

Standard & Poor’s said it affirmed a BBB- long-term issuer credit rating on Discover Financial Services Inc. and revised the outlook to stable from positive.

The agency also said it affirmed the BBB long-term issuer credit rating on Discover Bank and revised the outlook to stable.

The outlook change reflects a view that while the company will maintain good capital levels going into 2016, the agency said it believes there is less upside in capital based on an expectation of moderate earnings and a capital payout ratio of 85% or higher, S&P said.

Nevertheless, regulatory capital levels remain well above many peers, the agency said.

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