S&P might lift E*Trade

Standard & Poor's said it placed its BB- issuer credit and senior unsecured debt ratings on E*Trade Financial Corp. on CreditWatch with positive implications.

At the same time, the agency placed its BB+/B long- and short-term issuer credit ratings on E*Trade Bank on CreditWatch positive.

"We placed the ratings on CreditWatch positive to reflect further easing of regulatory restrictions on the firm, including the recent lifting of E*Trade Bank's MOU with its regulator, the Office of the Comptroller of the Currency," S&P credit analyst Bob Hoban said in a news release. "We believe the lifting of the MOU is an important milestone in E*Trade's recovery and efforts to normalize its regulatory status, but the firm remains under material regulatory restrictions."

These include restrictions on capital and liquidity, which constrain the rating, including regulatory approval required for all dividends from E*Trade Bank, and the need to maintain a 9% tier I ratio at the bank, S&P said.

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