NEW YORK (MarketWatch) — Rating agency Moody’s said Wednesday that the leveraged loan commitments of the major US investment banks do not have negative rating implications at this time. ”Firms have sufficient liquidity to fund their commitments, while continuing to maintain strong liquidity profiles and the earnings impact of marking down the commitments to reflect today’s wider credit spreads should be manageable,” the agency said in a report published Wednesday. The author said he believes that the firms, goldman Sachs , Morgan Stanley , Merrill Lynch , Lehman Bros and Bear Stearns , have sufficient earnings strength and diversification to be able to absorb the necessary mark-downs on the loan pipeline while still generating positive, albeit depressed, earnings and a respectable level of profitability.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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