S&P ups Citigroup outlook to positive

Standard & Poor's said it revised its outlook on Citigroup Inc. and its subsidiaries to positive from stable.

The agency said Citigroup has performed well through a series of adverse circumstances, including control and governance issues that led to regulatory restrictions and massive litigation charges, thanks to extraordinary diversification and the sheer size of its earnings base. Risk management and controls have been strengthened in response, and there is now a much more disciplined thought process about the risks that the organization bears.

The business mix is riskier than that of most other banks, S&P said, because of the large emerging market and nonprime consumer element, as well as the investment banking business that produces market risk and litigation risk; however, those risks are now more consciously mitigated.

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