...Strong Credit Profile: Morgan Stanley's (MS, or the company) ratings reflect its solid global franchise, strong capital ratios, improved funding and liquidity positions and continued execution of its wealth management strategy. These strong attributes are offset by what remains to be meaningful exposure to more market sensitive businesses and higher reliance on wholesale funding relative to peers. Financial Targets Met: During 2017, MS met its financial targets that were originally laid out in early 2016 (excluding the tax-related charge in 4Q17). In January 2018, MS reiterated its strategic objectives for the next couple of years and provided updated medium-term ROE and ROTCE targets following the passage of the Tax Cuts and Job Act. Despite a strong 1Q18 performance, MS did not revise upwards these medium-term financial targets, which appear attainable and are generally on the higher end as compared to the large GTUBs that disclose similar targets. Reliance on Wholesale Funding: MS relies...
