UPDATE 1-U.S. securities firms have stable outlook -Fitch

(Adds details, context)

NEW YORK, Feb 3 (BestGrowthStock) – The rating outlook for U.S.
securities and investment management firms is stable because of
the inroads they’ve made in raising capital, but consumer
finance companies have a negative outlook because of loan
deterioration, Fitch Ratings said on Wednesday.

In the wake of the global financial crisis, many big
financial institutions have repaid bailout funds to the
government and raised substantial amounts of capital in the
debt and equity markets.

Fitch said it expects the stronger firms to further bolster
their balance sheets to expand business and make acquisitions
as the economy improves.

“The rating outlook for securities firms and investment
management firms (both traditional and alternative) is stable
as efforts to bolster liquidity, build capital, and contain
risks have positioned many firms to create or expand
revenue-generating opportunities in 2010,” Fitch said in a
statement based on a report on the outlook for “U.S.
Diversified Financial Services.”

However, “the outlook for the finance and leasing sector,
consisting of commercial finance and consumer finance
companies, remains negative as credit deterioration, funding,
and liquidity concerns continue to weigh on the sector,” the
rating agency said.

U.S. consumers borrowed heavily via credit cards and by
taking out big mortgages before the housing slide and deep
recession. Many of those loans continue to go bad, putting
lenders under pressure, analysts say.

The performance of the whole financial sector “will remain
closely linked to the expected modest recovery of the U.S.
economy,” Fitch said.

Stock Investing

(Reporting by John Parry and Camille Drummond; Editing by
Leslie Adler)

UPDATE 1-U.S. securities firms have stable outlook -Fitch