Moody's upgrades E-Trade's credit rating to investment grade from junk

Moody's Investors Service on Wednesday raised E-Trade Financial Corp.'s credit rating to investment grade of Baa3 from Ba2 which is considered junk-bond status. "E-Trade derives its primary credit strength from the solid cash flow generation of its retail brokerage franchise," said Moody's in a statement. The ratings agency also praised the financial firm for its "strong and deliberative execution" of strategic and operational measures as well as strong oversight by the board. The outlook on the rating is positive. Shares of E-Trade were unchanged in after-hours trading.

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