Lehman Brothers Holdings Inc., the fourth-largest U.S. securities firm, said its access to cash is ``very strong'' as the shares fell 28 percent in early trading.
``Our liquidity position has been and continues to be very strong,'' the New York-based company said in an e-mailed statement. ``We consider the liquidity framework under which we have operated for almost a decade to be a competitive advantage.''
Lehman, led by Chief Executive Officer Richard Fuld, made the statement after smaller rival Bear Stearns Cos. yesterday agreed to be acquired by JPMorgan Chase & Co. for $2 a share. The sale price was 90 percent below Bear Stearns's market value last week, after the company faced a run on its assets that raised the prospect of bankruptcy.
Lehman had its long-term credit rating affirmed at A1 by Moody's Investors Service earlier today. The rating company lowered its outlook on the company to stable from positive.
``Lehman has navigated quite well to date through persistently volatile and challenging financial markets,'' Moody's said in the statement. The outlook is no longer positive because the value of the firm's assets is declining and global liquidity is drying up, Moody's said.
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