Analyst Actions: Citigroup Rebounds After S&P Ratings Cut to ‘Negative’ Sinks Stock

11:58 AM Eastern Standard Time, 02/09/2010 (MidnightTrader) — Citigroup Inc. (C) jumped out of the gate to a session high of $3.23 before sinking on a cut in its debt ratings by Standard & Poor’s Ratings Services. But the stock has pared losses and bounced back into the green, up 1%, on the broader market rally.

The stock opened up 5 cents at $3.20 before see-sawing to a low of $3.11. It’s up 1% at $3.18 and adding gains at mid-day.

S&P cut the company to "negative" from "stable," saying the U.S. government appears increasingly likely to leave bond holders hanging in case of another bailout of financial companies. The negative outlook suggests a possible downgrade going forward.

S&P affirmed Citigroup’s investment-grade counterparty credit and debt ratings, and said the bank’s position as a stand-alone company has improved. S&P’s counterparty credit and debt ratings on Citigroup now stand at A and A-1 respectively.

Price: 3.18, Change: +0.03, Percent Change: +0.95