Citibank NA gets top ratings from Moody's
Moody's Investors Service, the leading provider of independent credit ratings, has upgraded the ratings of Citibank NA to Aaa for long-term deposits and to A for financial strength (both ratings are at the top of their respective scales), says a press release. The outlook of the upgraded bank and on Citigroup Inc is stable. This action completes a review initiated on June 8, 2006 by Moody's. "Citigroup's businesses are exceptionally diversified by customer, product and geography, and the firm also has the most global distribution platform of any major bank," said Moody's Senior Vice President Peter Nerby. Nerby also said Citigroup has a well-recognised brand and management has built leading global franchises in credit cards, consumer finance, international consumer banking, wealth management and wholesale banking. These businesses have produced strong and consistent earnings even during difficult economic or market conditions. As a result, Citigroup produces good risk-adjusted profitability compared to most A/Aaa-rated banks. Citigroup's financial fundamentals also compare well to Aaa-rated industrials in the areas of earnings power, profit margins, and capital strength. Moody's considers Citigroup's risk management culture and capabilities to be the strengths of the firm, the release added.
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