(Adds comments from Morgan Stanley's spokesman, details)
May 28 (Reuters) - Moody's Investors Service upgraded Morgan Stanley and its affiliates' baseline credit assessments to 'baa2' from 'baa3', citing the investment bank's increased business diversification and prospects for improved profitability.
Moody's also upgraded the bank's adjusted baseline credit assessment to 'baa1' from 'baa2'.(bit.ly/1Bsuv23)
Morgan Stanley CEO James Gorman said earlier this month to Reuters that getting the bank's rating upgraded by Moody's was one of his top priorities this year.
"The two-notch upgrade is an important codification of all the work we have done and the consistency of our results," said a Morgan Stanley's spokesman.
Moody's had downgraded its debt ratings on Morgan Stanley in 2013 to 'baa2' from 'baa1' citing increased confidence that the U.S. government would not bail it if the bank fails.(reut.rs/1GHQV5D)
As part of its reviews of 13 global investment banks' ratings, Moody's affirmed baseline credit assessments on 12 other banks. (Reporting by Anjali Rao Koppala in Bengaluru; Editing by Maju Samuel and Diane Craft)