Content provided in partnership with

Business Services Industry

Fitch Rates Lehman Brothers' Samurai Bond Issue `A'

Business Wire, July 19, 2000

Business Editors

NEW YORK--(BUSINESS WIRE)--July 19, 2000

Fitch, the international rating agency, has assigned its senior unsecured rating of `A` to Lehman Brothers Holdings Inc.'s (Lehman) Japanese Yen Bonds (also referred to as Samurai Bonds). Approximately 50 billion yen of securities have been issued in a two-tranche series, the first totaling 40 billion yen and carrying a term of three years and the second totaling 10 billion yen carrying a five year term.

Most Popular Articles in Business: Research and Markets : Tesco Plc - SWOT Framework Analysis; Do Us a Flavor - Ben & Jerry's Issues a Call for Euphoric New Flavors; eBay made easy: ready to start an eBay business? These 5 simple steps will ...; Katrina's lawsuit surge: a legal battle to force insurers to pay for flood ...; Wal-Mart's newest distribution center opened last month near the southwest ...; More »

The rating reflects Lehman's position as one of the leading U.S. securities firms boasting strong market positions in securities underwriting, corporate finance advisory, trading/market making and merchant banking. Over the last several years, Lehman has continued to successfully transform itself from a primarily fixed income trading firm to a full service global investment bank that in recent years has earned as much as 40% of revenues from non-U.S. sources. In this regard moreover, Lehman's strategic focus has been to enhance its market position in higher margin business segments -- most notably equity and high yield underwriting, M&A, merchant banking and private client services. Lehman has demonstrated success in these endeavors as evidenced in its solid operating performance throughout this economic expansion.

While diversifying its revenue streams, recent business and geographic initiatives have not yet fully offset the firm's somewhat greater dependence on more cyclical trading and underwriting businesses for revenues. Lehman moreover, does not presently boast a significant source from which it can draw recurring revenues -- such as asset management and/or securities clearing -- that would serve to offset the potential volatility embedded in its core businesses. Lehman's strategy however, has more recently begun to focus on developing its asset management platform specifically to high net worth individuals. From an operating standpoint, Lehman's credit profile is supported by improved expense measures as well as strong and improving overall earnings, which have been spurred by the general strength of the global markets. The firm's liquidity position moreover, remains solid, while leverage levels continue to be managed downward.

Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered in New York and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Insurance, Corporates, Structured Finance, Sovereigns and Public Finance Markets worldwide.

Business Services Industry

Fitch Rates Lehman Brothers' Samurai Bond Issue `A'

Business Wire, July 19, 2000

Find Research Guides for:

Find Featured Titles for: Autos

Most Popular Articles in Business

Most Popular Publications in Business