Moody's: Citigroup unchanged

Moody's Investors Service said that Citigroup Inc.'s repayment of TARP and the termination of Citigroup's loss-sharing agreement with the U.S. government had no immediate rating implication.

Moody's said it does, however, continue to assess the effect of the elimination of the loss-sharing arrangement relative to the incremental capital Citigroup is raising.

The repayment of TARP assumes Citigroup is successful in raising $17 billion of additional common equity, the agency noted, adding that the equity raise and the repayment of TARP improves Citigroup's capital mix, reduces the chances that it will need to make an allowance against its $38 billion net deferred tax asset, and improves its ability to retain institutional clients and employees.

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