Moody's affirms E*Trade, view positive

Moody's Investors Service said it affirmed all outstanding ratings of E*Trade Financial Corp. (long-term senior debt at B1) and its lead bank subsidiary, E*Trade Bank (long-term deposits at Ba2; other senior obligations at Ba3).

The outlook on the long-term and bank financial strength ratings was raised to positive from stable.

Moody's said the rating actions were prompted by E*Trade's announcement that it had agreed to acquire for $1.6 billion Brown & Co.

Moody's said it believes that although credit metrics will weaken in the short-term, bondholders should benefit in the intermediate to longer term; therefore, the outlook on E*Trade's ratings was changed to positive.

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