Fitch: Goldman Sachs still adversely impacted

Weak global economic conditions will continue to adversely impact revenues and profitability in a number of Goldman Sachs Group Inc.'s major business lines such as debt underwriting, credit, and proprietary investments, according to Fitch ratings, which has downgraded the long-term issuer default rating, debt and outstanding credit ratings of Goldman Sachs and subsidiaries as outlined below.

Affected ratings include the long-term issuer default rating to A+ from AA-; senior debt to A+ from AA-; subordinated debt to A from A+; preferred stock to A- from A+; and individual to B/C from B.

The outlook is stable.

The agency said that while product diversity within the franchise has brought and should continue to bring some balance to revenue streams, Fitch expects that ongoing mark-to-market valuations on remaining high risk exposures combined with lower revenue prospects will hinder operating performance over the next several quarters.

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