DBRS Morningstar cuts Credit Suisse credit rating to ‘BBB’

(Reuters) -DBRS Morningstar became the first global rating agency to cut Credit Suisse’s credit score on Thursday, less than a day after a major share price plunge saw Switzerland’s central bank provide emergency support to the lender.

The move follows Moody’s (NYSE:) earlier saying it will monitor Credit Suisse’s situation and “act appropriately” regarding its rating.

DBRS cut the bank’s issuer rating to ‘BBB’ as it “continues to report missteps and compliance failures, resulting in a visible weakening of the franchise,” and said the holding company’s “ability to restore stakeholders’ confidence” is concerning.

A slide in Credit Suisse’s shares had threatened to spiral into a wider banking crisis on Wednesday, while some analysts said the Swiss National Bank’s $54-billion loan has only bought the lender some time to work out what to do next.

Bank stocks tumbled across the world on Monday after the sudden collapse of Silicon Valley Bank and Signature Bank (NASDAQ:) forced U.S. emergency measures to ensure the safety of the banking system.