| Abstract: | On March 21, 2008, Standard&Poor's Ratings Services affirmed its ratings on The Goldman Sachs Group Inc. (holding company; AA-/A-1+) and Lehman Brothers Holdings Inc. (holding company; A+/A-1). At the same time, Standard&Poor's revised its outlook on these two companies to negative from stable. The favorable effect of the Federal Reserve's unprecedented support for the U.S. broker-dealers mitigates liquidity concerns by instilling confidence in the capital markets. Nevertheless, we believe that negative rating outlooks are broadly appropriate for the independent securities firms, reflecting the potential for a more substantial decline in profitability from capital market activities. Our current expectation is that net revenues could decline 20%-30% year-on-year (adjusting for writedowns). Although this would erode companies' margin of
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| Brief Excerpt: | RESEARCH Ratings Definitions Research Update: Goldman Sachs Group And Lehman Brothers Ratings Affirmed; Industry Outlook Revised To Neg Publication date: 21-Mar-2008 Primary Credit Analysts: Scott Sprinzen, New York (1) 212-438-7812;...
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| Report Type: | Research Update
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| Ticker: | GS
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| Issuer: | Goldman Sachs Group Inc. (The)
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| GICS: | Investment Banking & Brokerage (40203020)
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| Sector: | Asset-Backed Commercial Paper, Asset-Backed Securities, Collateralized Debt Obligations, Commercial MBS, Corporations, Financial Institutions, Global Issuers, Insurance, Public Finance, Real Estate Companies, Residential MBS, Structured Finance, Utilities
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| Country: | United States
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| Region: | United States
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| Free Sample: |
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