S&P's cuts E*-Trade Financial's rating to CCC+

Credit ratings agency Standard & Poor's, publishing financial research and analysis on stocks and bonds, announced on Thursday that it cuts its ratings on retail brokerage company E-Trade Financial Corp. 

Thus, long-term counterparty credit and senior debt ratings were reduced from "B" to "CCC-". As for the counterparty credit and certificate of deposit ratings on E-Trade's banking subsidiary, they were cut to "CCC+" from "BB-".

S&P’s put the ratings on a negative credit watch amid expectations that E-Trade will need to complete a distressed debt exchange. That means there is a 50% change of another downgrade in the next three months. 

E-Trade stocks lost 12 cents, or 7.8%, to $1.41 in afternoon trading. During the past year, shares have been traded between 59 cents and $4.13.