Another blow to Goldman Sachs (NYSE: GS): Fitch has said that the firm's legal problems and the uncertain regulatory climate have prompted it to lower its long-term view to negative from stable. The credit rating agency also affirmed the 'A+/F1+' long- and short-term Issuer Default Ratings (IDRs) for the company.

Fitch said in its release: "At a minimum, Fitch believes the civil charges to date and the pending criminal investigation, coupled with a highly public hearing by the U.S. Senate's Permanent Subcommittee on Investigations, generate adverse publicity that tarnishes Goldman's reputation. And for financial services companies, particularly those dependent on the capital markets, reputation is critically important. Moreover, expected follow-on shareholder and investor claims are likely to invariably consume management time and financial resources as well."

That's fairly stark. That said, the legal issues may prove less onerous and once an actual reform law is passed, the added certainty could lead to a quick upgrade. Then again, criminal charges would have a severe impact. 

For more:
- here's the release

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