Citigroup Leads Wall Street In Moody’s Downgrade Dismissal

Citigroup Inc. (C), the lender whose credit rating was cut by Moody’s Investors Service to the lowest since its 1998 creation, led Wall Street banks in dismissing downgrades and urged investors to seek alternative analyses.

Moody’s two-grade cut of Citigroup’s ratings was unwarranted, arbitrary and failed to recognize the lender’s financial strength, the New York-based bank said in a statement. Investors shouldn’t rely on “opaque” credit ratings, it said.

“Moody’s approach is backward-looking and fails to recognize Citi’s transformation over the past several years,” said the bank, created in 1998 through the merger of Citicorp and Travelers Group Inc. “Citi believes that investors and clients have become much more sophisticated in their credit analysisover the past few years, and that few rely on ratings alone — particularly from a single agency — to make their credit decisions.”

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