NEW YORK, July 11 (Reuters) - Standard & Poor’s said on Friday the counterparty credit rating of Lehman Brothers Holdings Inc LEH.N continues to reflect the company’s solid liquidity and funding profile despite pressure on its stock.
Lehman stock has fallen roughly 40 percent this week as the investment bank was battered by rumors — later discredited — that some key counterparties had pulled business away from it.
S&P said the persistent and ongoing pressure on Lehman’s stock price in recent days has not hurt Lehman’s liquidity, funding and client business. But the rating firm expressed concerns that these pressures complicate the operating environment for Lehman, which was downgraded in June.
“We are concerned that ill-founded and persistent pressures on Lehman’s stock unnecessarily prolong what is already a very challenging business environment,” it said.
S&P said Lehman’s counterparty credit risk rating is “A/A-1”. The counterparty credit rating reflects how well the company can meet its financial obligations with trading partners, customers or other parties. (Reporting by Anastasija Johnson; Editing by James Dalgleish)