S&P keeps Citigroup on watch

Standard & Poor's said its AA- long-term counterparty credit rating on Citigroup Inc. remains on Creditwatch with negative implications, where it was placed Sept. 29.

This update follows the announcement of a government support package, the agency noted.

"We expect the support to reduce the impact of deteriorating asset quality on the ratings and help to restore confidence in the company. As a result, the agency said it no longer believe that ratings would fall more than one notch by year end. However, the agency said it will provide its stand-alone assessment of creditworthiness, which excludes government support. This assessment could be lower than the issuer credit rating, to reflect the potential for substantial asset-quality deterioration," said S&P credit analyst Tanya Azarchs.

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