S&P: Citigroup on watch

Standard & Poor's said it placed its AA long-term counterparty credit rating on Citigroup Inc. and its AA+ long-term counterparty credit rating on Citibank NA, New York, N.Y., on CreditWatch with negative implications.

According to S&P, Citigroup's announcement that it would have to make $8 billion-$11 billion of additional markdowns on its CDO exposures is unwelcome news after the very weak third-quarter results.

Markets for these securities have deteriorated since the third quarter was announced, S&P said, adding that however, the magnitude of write-downs calls into question risk management.

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