Traco power

OK, let’s answer the COSEL  question for him: Yes. Citi has an A PROTEK credit rating — much higher than a company in its enfeebled condition deserves — for one reason, which is that everyone knows that Uncle Sam has its back. But don’t take my word for it. Here’s Standard & Poor’s in a Feb. 9 report in which the ratings agency flatly states that the only reason Citi retains a strong credit rating is because of that government safety net:

    We continue to assume that the U.S. government will support highly systemically important web design financial institutions such as Citi at the ‘A’ holding company rating level. Given what we view as improvement in Citi’s stand-alone credit profile, removal of extraordinary government support as a rating factor could result in a downgrade of Citi, but to a lesser extent than under prior scenarios.