NY –- Standard&Poor's CreditWire 12/18/98 -– Standard&Poor's today revised its outlook on Bank of Montreal (BMO) to negative from stable. The bank's ratings were affirmed (see list). The revision action follows the deterioration of BMO's performance resulting from the impact of global capital markets turmoil, which reduced fourth-quarter operating profits in 1998. Previously, profits had been running at a stable but mediocre ROA in the 0.65% range despite strong loan growth and improving loan quality. Future earnings will likely reflect softening economic conditions and regulatory pressures to boost general reserves. Capital and reserve levels are among the strongest of Canadian banks, especially given the risk profile of the bank's activities. Additionally, the bank is broadly diversified,
