Bear Stearns Upgraded After Shotgun Marriage to JPMorgan

Gimme Credit analyst Kathleen Shanley upgraded her credit score for Bear Stearns (BSC) from “deteriorating” to “improving” after the “shotgun marriage” between JPMorgan Chase (JPM) and Bear Stearns over the weekend.

The close involvement of regulators in the deal suggests unhappy shareholders will find it difficult to derail things, Ms. Shanley said in a note.

Her revised outlook assumes Bear Stearns’ debt will be taken on by JPMorgan, which should please bondholders, and the analyst expects to revise her credit score to “stable” if the deal closes under current terms.