DBRS Downgrades Citigroup Preferred Shares to D Following Suspension of Dividend

DBRS has today downgraded its ratings for Preferred Shares issued by Citigroup Inc. (Citigroup or the Company) to D from BBB following the announcement that the Company intends to suspend dividend payments on its outstanding preferred shares. This suspension is linked with the Company’s announced transaction to exchange common stock for up to $27.5 billion in preferred securities. Under DBRS policy, the suspension of dividend payments on non-cumulative perpetual preferred securities, such as those issued by Citigroup, results in a rating of D. The D rating will continue as long as the dividend payments on the Company’s preferred shares remain suspended, and until such time as the rating is discontinued or reinstated by DBRS. The ratings on these instruments had been Under Review with Negative Implications since January 14, 2009 and remained there following the downgrade of Citigroup’s ratings on January 23, 2009. Citigroup will continue to make scheduled payments on outstanding trust preferred and enhanced trust preferred securities.

Note:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodologies are Rating Banks and Bank Holding Companies Operating in the United States, and Enhanced Methodology for Bank Ratings – Intrinsic and Support Assessments which can be found on our website under Methodologies.

This is a Corporate (Financial Institutions) rating.