Jim Cramer Blog

Standard & Poor's on Friday changed its rating outlook on Bear Stearns Cos. to negative from stable, indicating a greater chance of a downgrade over the next two years, as it warned of problems that could hurt the firm's performance "for an extended period."

S&P said issues include problems at some of Bear Stearns' managed hedge funds.
The change pushed Bear Stearns' shares down 6 percent to $108.69 and drove the cost of protecting its debt with credit derivatives nearly 50 basis points higher.
A spokesman for Bear Stearns was not immediately available for comment.
S&P currently rates Bear Stearns "A-plus," the fifth-highest investment grade rating.

Labels: Bear Stearns Companies Inc., BSC