NEW YORK (TheStreet) -- Shares of Citigroup (C) - Get Report are increasing 0.57% to $39.70 late Monday morning as American Express (AXP) said it will sell its CostcoWholesale Corp. (COST) U.S. co-branded card portfolio to the financial services company's consumer unit Citibank.

The sale is expected to close in June, at which time all eligible Costco American Express Card co-branded accounts will be transferred to Citi, according to a company statement.

Additional details will be provided to card members before the partnership end date.

Terms of the deal were not disclosed, but New York-based American Express estimates a gain of about $1 billion from the sale.

"Given that the close is still several months away, and the card member borrowing and paydown trends are difficult to predict in this type of transition, the final gain could differ from the estimate," American Express said in a statement.

Last year, American Express and Costco failed to reach an agreement on a new contract. The U.S. partnership between the companies is set to expire at the end of March.

Shares of American Express are rising 1.16% to $56 and Costco stock is up 1.47% to $151.88 on Monday morning.

(Costco is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial.)

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.

The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.

The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and attractive valuation levels.

As a counter to these strengths, the team also finds weaknesses including a generally disappointing performance in the stock itself and poor profit margins.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: C

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