NEW YORK (AP) - Credit rating agency Standard & Poor's affirmed its rating
on JPMorgan Chase & Co. Monday and raised Bear Stearns Cos.' ratings to match
JPMorgan's.
The ratings actions follow JPMorgan amending its purchase price for Bear
Stearns to about $10 per share from $2 per share.
Each company now carries an investment-grade "AA-" rating.
S&P's upgrade of Bear Stearns debt and counterparty ratings to "AA-"
recognizes "the strengthened immediate guarantee by JPMorgan Chase of all of
Bear Stearns' counterparty obligations."
The increased sale price also improves the likelihood the sale will get
done, S&P said in a statement.
S&P reiterated JPMorgan's rating, noting the increased price is "still
immaterial" to the bank's capital strength and does not increase the company's
risk.
Shares of Bear Stearns more than doubled to $13.31 in afternoon trading.
JPMorgan shares rose 3 percent to $47.37.
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