... ratings are supported by its solid liquidity and capital levels. Citi's fully phased-in CETI under Basel III improved to 10.7% at Sept. 30, 2014, higher than many of its U.S.-based GTUB peers. The company's liquidity profile is much improved with a large percentage of high quality liquid assets (HQLA) as a percentage of assets at Sept. 30, 2014 (22%). The company's capital and liquidity are much higher than precrisis levels, and are key rating drivers. Earnings Still a Work in Process: Citi's earnings in 2014 were expected to be a year of recovery, which did not materialize. Earnings were dragged down by roughly $9.3bn of legal- related charges, including $2.7bn in charges expected in 4Q14 to build legal reserves. The 2015 financial targets may be a challenge for Citi to attain. However, with a significant amount of litigation and repositioning expenses already incurred in 2014, there may be greater earnings momentum in 2015. Risk Controls...
