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BULLETIN: J.P. Morgan Chase Settles with Insurers on Enron-Related Surety Bonds Jan 03
Standard & Poors, Jan 2003
Abstract
The charges announced by J.P. Morgan Chase & Co. (A+/Negative/A-1) to settle a dispute with insurance companies ($260 million net of tax) over Enron-related surety bonds and to estimate liabilities on a variety of other potential litigation expenses ($600 million net) will not affect the bank's ratings. The charges were not unexpected in view of information that has been coming to light over the past year. Standard & Poor's will be more focused in the future on the quality of earnings and the progress in reducing credit risk. Underlying operating earnings for the fourth quarter promise to be weak relative to the company's potential, but are still in line with expectations at this point in the cycle. To maintain ratings,...
Companies mentioned in this report are: JPMorgan Chase & Co.
Action: S&P Event
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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