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Sunday, November 8, 
12:26 pm

Bear Stearns gets S&P ratings boost

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J.P. Morgan Chase & Co. increased offer for Bear Stearns Cos. may have pleased some shareholders, but it also caught the eye of credit ratings agency Standard & Poor's. The New York-based debt rating agency upgraded its credit ratings on Bear five notches to AA- from BBB based on the revised deal.

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"The price increase and the anticipated increase in the amount of shares controlled by J.P. Morgan raise the probability that the deal will be completed," S&P said in a statement. "On its own, Bear Stearns' viability is uncertain." The upgrade is a money saver for Bear because a higher rating translates to potentially lower rates for financing from lenders. - Gerald Magpily

See TheDeal.com: J.P. Morgan quintuples Bear price
See S&P press release





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