S&P: AmEx unchanged

Standard & Poor's said that its rating on American Express Co. (A+/watch negative/A-1) would not be immediately affected by the announcement that the U.S. Federal Reserve approved its application to become licensed as a bank holding company and to be regulated by the Federal Reserve.

The resolution of the Creditwatch will depend on its view of how successful AmEx will be in coping with the current operating environment, including its ability to further diversify its funding sources by reducing its reliance on credit-sensitive sources, and its outlook for credit losses and profitability relative to the current rating level, the agency said.

S&P noted that it will also review how the firm may benefit from its new status as a bank holding company, particularly as this relates to liquidity and funding.

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