Home / Business and Economy / Schwab Earns Positive Outlook from S&P as Losses Decline
Schwab Earns Positive Outlook from S&P as Losses Decline
17 Nov, 2025
Summary
- S&P maintains "A-/A-2" ratings, upgrades Schwab's outlook to positive
- Schwab reduces unrealized securities losses, improves capital ratios
- Schwab enhances interest-rate risk management through derivatives
In a recent development, S&P Global Ratings has maintained its "A-/A-2" issuer credit ratings on The Charles Schwab Corporation (NYSE:SCHW) but has upgraded the company's outlook from stable to positive. This positive outlook reflects Schwab's significant progress in several key areas.
Firstly, the ratings agency notes that Schwab's unrealized securities losses have decreased significantly. Additionally, the firm's adjusted regulatory capital ratios have sharply increased, indicating a stronger financial position. Furthermore, Schwab has handled its interest-rate risk and balance-sheet volatility more effectively, partly by employing derivatives to shorten the term of its securities portfolio.
These improvements have not gone unnoticed. Billionaire investor Ken Fisher has also recognized Schwab as one of the best financial stocks to buy, further bolstering the company's reputation. Assuming Schwab maintains its strong capitalization and performance while managing its balance-sheet and interest-rate risks, S&P may upgrade the firm's ratings over the next two years.
Schwab is a leading U.S.-based brokerage and wealth management firm, providing a range of services to individual investors and independent advisors, including trading, advisory, banking, and custodial services.
