Lehman Brothers raised its rating Monday on City National Corp. of Beverly Hills, Calif., expressing the view that the company has brought its credit quality issues — of concern for some time — under control.

Equity analyst Brock Vandervliet upped his rating to “strong buy” from “market perform” after meet with the chief financial officer and chief credit officer. Mr. Brock said they reassured him that they have addressed credit quality deterioration at City National. Its nonperforming assets have not dropped, but Mr. Vandervliet said in an interview that he felt comfortable raising his rating because the reserve-to-loan ratio, 2.07%, is higher than the 1.50% maintained by most midcap banks.

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