S&P Revises Morgan Outlook to Negative

Standard & Poor's has changed its ratings outlook for Morgan Stanley and related entities from stable to negative due to the Wall Street firm's subprime mortgage-related multibillion-dollar revenue decline.S&P said it believes that, given offsetting gains in other business lines, Morgan Stanley "could at least have break-even net earnings for the quarter." However, the subprime-related writedowns have left "little leeway in the ratings to sustain additional setbacks," the rating agency said. Standard & Poor's can be found on the Web at http://www.standardandpoors.com.