S&P: RBC view stable

Standard & said it revised the outlook on Royal Bank of Canada to stable from positive based on markedly diminished prospects for its retail banking operations in the United States. The agency affirmed its AA- long-term and A-1+ short-term counterparty credit ratings.

According to S&P, the outlook revision reflects significant pressure on earnings and growth prospects for retail banking operations in the United States due to the housing downturn.

Ratings reflect the bank's very strong domestic market position in a full range of banking businesses, the agency said.

Ratings also reflect growing contributions from global operations but modest to date returns on the substantial investments in retail banking in the United States, S&P said.

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