You've likely heard by now that the credit default swap spreads of Goldman Sachs, Morgan Stanley, Citigroup and other top investment banks have widened as of late. The markets are certainly "bullish" that the credit risk they've incurred has been boosted to uncomfortable levels. That certainly seems to be the prevailing opinion in the equity markets as well. But a different view comes from the ratings agencies. Standard & Poor's in fact just upgraded Morgan Stanley's credit rating to AA- from A+, noting that any credit-oriented problems appear to be manageable. Certainly, apart from some swallowed bridge loans, the top banks have moved to limit their exposure as best they can. They appear to have curtailed prime brokerage lending to credit-oriented hedge funds and they have drastically cut their warehouse lines to packagers of collateralized debt obligations, including collateralized loan obligations. So hopefully, the larger fears will soon subside.  

For more on Morgan Stanley:
- here's a Financial Week article