iamdlogan

Calling a Bottom: It's Time To Party

AND HERES MY PROOF...3:27PM Lehman Brothers: Moody's places Lehman's A2 rating on review with direction uncertain (LEH) 7.84 +0.05 : Moody's has placed on review with direction uncertain the long-term ratings of Lehman Brothers Holdings (senior at A2), as well as the long-term ratings of the principal rated operating and guaranteed subsidiaries. Lehman's Prime-1 short-term ratings were placed on review for possible downgrade. Moody's said that the review with direction uncertain reflects the high degree of fluidity in Lehman's current situation. Moody's believes that Lehman's financial flexibility has become more limited as its stock price has fallen to near all-time lows and the firm is experiencing a crisis of confidence. Although Moody's believes liquidity remains firm and has not shown signs of material erosion, the potential for rapid franchise impairment in this environment remains a significant rating concern for Moody's... Moody's believes that Lehman's liquidity pool and its access to the Primary Dealer Credit Facility provide the firm with time to address these challenges. The rating agency believes that Lehman's liquidity management and stand-alone liquidity position remain acceptable... "A strategic transaction with a stronger financial partner would likely add support to the ratings and result in a positive rating action." Conversely, should a strategic arrangement fail to materialize in the near term, Moody's said that the ratings would be downgraded, likely into the Baa category, with the ratings continuing on review for possible downgrade. The rating agency also expects that, should this occur, the rating differential between Lehman's preferred stock ratings and senior ratings would be widened. Moody's said that the wider differential would reflect the increased risk of a suspension of dividend payments in such a scenario.