TSC Ratings' Updates: Citigroup

The following ratings changes were generated on Tuesday, Nov. 25.

We've downgraded Citigroup(C Quote) from hold to sell, driven by its feeble growth in its earnings per share, deteriorating net income, generally weak debt management, disappointing return on equity and generally disappointing historical performance in the stock itself.

Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior, a signal of major weakness within the corporation. Citigroup's return on equity significantly trails that of both the industry average and the S&P 500. The debt-to-equity ratio is very high at 3.14 and currently higher than the industry average, implying very poor management of debt levels within the company. Net income has decreased significantly when compared with the same quarter a year ago, falling from $2,212 million to -$2,815 million and underperforming both the S&P 500 and the diversified financial services industry. ...