S&P revises Discover Financial Services view to stable

S&P said it revised its outlook on Discover Financial Services and its bank subsidiary, Discover Bank, to stable from negative and affirmed its issuer credit ratings on the companies at BBB- and BBB, respectively.

“We believe that the repeated infusions of fiscal stimulus by the U.S. government (including the $1.9 trillion stimulus provided in March 2021) have had a positive effect on DFS' borrowers' credit profiles, resulting in higher savings and better debt servicing capacity,” S&P said in a news release.

“In addition, since the onset of the pandemic, we believe that DFS has managed credit, capital, and funding quite prudently by increasing reserves, accreting capital, and reducing costly wholesale funding.”

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