Research Update: Capital One Financial Outlook Revised To Stable From Negative As Consumer Creditworthiness Holds Up; Ratings Affirmed

Consumer creditworthiness has held up better than expected during the past year, aided by massive fiscal stimulus to combat the economic dislocation and higher unemployment caused by the COVID-19 pandemic. Capital One Financial Corp.'s operating performance and balance sheet strength have benefited from the fiscal and monetary support by the U.S. government, prudent management of credit and liquidity, and regulatory restrictions on shareholder payouts. We revised our outlook on Capital One Financial and its bank subsidiaries to stable from negative and affirmed our long-term issuer credit ratings at 'BBB' and 'BBB+', respectively. The stable outlook indicates our view that Capital One is well-positioned to absorb any remaining fallout from the pandemic, including higher credit losses, which we expect will peak

...- Consumer creditworthiness has held up better than expected during the past year, aided by massive fiscal stimulus to combat the economic dislocation and higher unemployment caused by the COVID-19 pandemic. - Capital One Financial Corp.'s operating performance and balance sheet strength have benefited from the fiscal and monetary support by the U.S. government, prudent management of credit and liquidity, and regulatory restrictions on shareholder payouts. - We revised our outlook on Capital One Financial and its bank subsidiaries to stable from negative and affirmed our long-term issuer credit ratings at '###' and '###+', respectively. - The stable outlook indicates our view that Capital One is well-positioned to absorb any remaining fallout from the pandemic, including higher credit losses, which we expect will peak toward the end of 2021 or later....

Research Update