After dipping for much of the morning, the stock was up 2.8%, or 11 cents, to $4.01 in late afternoon trades. Volume of 480 million compared to the issue's trailing three-month daily average of 807.8 million. One positive for the stock was Moody's Investors Service on Monday raised its outlook on Citigroup's stand-alone bank financial strength rating to stable from negative, citing the bank's strengthened capital position and improved risk profile. Moody's still rates Citigroup's bank financial strength at C minus, the equivalent to a Baa2 on its long-term debt rating scale, it says. The agency also lifted its view on Citigroup's hybrid securities to stable from negative. These securities include: junior subordinated debt rated Ba1, cumulative preferred securities rated Ba2 and non-cumulative preferred securities rate Caa1, the ratings service said. Moody's already has a stable outlook on Citigroup's senior debt (both long term and short term) as well as deposits ratings. Citigroup's improved capital profile "provides a greater buffer against the losses that Moody's anticipates in an expected case and, critically, in a more severely stressed scenario" for Citigroup's residential mortgage portfolio, credit cards and structured residential mortgage securities. In addition, Citigroup's reduction in troubled assets, primarily the sale of structured residential mortgage securities were at better-than-expected prices, while first half 2010 earnings were higher than the ratings agency was expecting.
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