...On Feb. 27, 2009, Fitch Ratings affirmed the long-term and short-term IDRs of Citigroup Inc. (Citi), given Citi's systemic importance and the magnitude of support from the U.S. government. However, Citi's Individual rating was downgraded from `C/D' to `E' reflecting comparatively high problem assets and heavy reliance on government financial support. In February 2009, Citi announced of a plan exchanging various preferred instruments for common stock; given U.S. government participation in this plan, it became by far the largest shareholder with an ownership stake of approximately 34%. Other support measures by the U.S. government have included two rounds of TARP capital injections, a loss sharing agreement on a $300bn pool of assets, liquidity support, and considerable funding support through the FDIC's TLGP program. Following the exchange, Citi's TCE increased by approximately $60bn and the TCE ratio increased to 5.5% pro forma from 2.2% for 2Q09. The Tier I common ratio stands at approximately...
|
