Since the onset of the credit crisis one year ago, Morgan Stanley's financial performance and risk management has been inconsistent, and below the levels expected of a Aa3-rated financial institution," Moody's analysts Robert Young and Peter Nerby said a press release.
The review will look at, "Morgan Stanley's ability to control risk and generate higher levels of profitability over the next one to two years," the release said. The ratings agency said "the more likely" result of its review would be a downgrade of Morgan Stanley's long-term debt to A1.