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Fitch Affirms Charles Schwab's IDR at 'A'; Outlook Stable

^{Published on 2008-12-22 15:21:46, Last Modified on 2008-12-22 15:22:12 - Market Wire}
 

CHICAGO--([ BUSINESS WIRE ])--Fitch Ratings affirms the long-term Issuer Default Rating (IDR) of Charles Schwab Corp. (Nasdaq: SCHW) at 'A'. The Individual rating is affirmed at 'B'. The Rating Outlook is Stable. A complete list of ratings is shown below.

Schwab's ratings reflect the company's strong franchise in online brokerage, modest leverage, and overall sound financial position. The business model increasingly emphasizes revenues generated by Assets under Management and is less reliant on discount brokerage fees. Capital and liquidity are good. Schwab has a moderate level of exposure to the credit market turmoil, including mortgage exposures at Schwab Bank and the overall sensitivity of its business model to equity price levels and transaction volumes. Nonetheless, Fitch expects the company to maintain a competitive position and earnings performance consistent with the rating category. Consequently, the Outlook remains Stable.

Fitch affirms the following ratings:

The Charles Schwab Corporation

--IDR at 'A';

--Individual at 'B';

--Senior unsecured debt at 'A';

--Short-term IDR at 'F1';

--Short-term debt at 'F1';

--Support at '5';

--Support Floor at 'NF'.

Schwab Capital Trust I

--Trust Preferred Securities at 'A-'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, [ www.fitchratings.com ]. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.