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NEW YORK (AP) — Standard & Poor’s Ratings Services said Friday it has struck a more cautious stance on brokers and may downgrade Goldman Sachs Group Inc. and Lehman Brothers Holdings Inc. because of the prospect of volatile markets hurting profit more than expected.

S&P said its current rating on the brokers assumes revenues will decline 20% to 30%. It is possible, though, that given how unpredictable markets have been, revenue could decline more, S&P said.

S&P adopted a "negative" outlook - meaning it could slash ratings within the next two years - on the brokers to account for the potential for a more precipitous decline in profitability from the capital markets.

The fate that befell Bear Stearns Cos. (BSC, Fortune 500) highlights the extent to which firms are exposed to negative sentiment in the capital markets, S&P said. This week, the liquidity-starved company, whose stock topped $155 last year, sold itself to JPMorgan Chase & Co. (JPM, Fortune 500) for $2 a share.

While Lehman Brothers (LEH, Fortune 500) has a stable structure for raising cash and bank’s earnings have held up well, S&P said it cannot ignore the possibility of an "adverse change in perceptions," even if that change is misguided.

Goldman Sachs (GS, Fortune 500) has proved itself particularly adroit during this credit crisis, but S&P said its aggressive willingness to assume risk leaves the bank vulnerable.

S&P began considering a downgrade of Morgan Stanley after the bank reported $9.4 billion in losses on its portfolio at the end of the fiscal fourth quarter. While the fiscal first quarter was more benign, S&P said it has doubts about whether that performance is sustainable.

S&P said it will determine whether to downgrade Morgan Stanley (MS, Fortune 500) in the next month. The ratings agency downgraded Merrill Lynch & Co. (MER, Fortune 500) to "A+" in October and said the rating remains unchanged. 

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