DBRS Morningstar Cuts Credit Suisse Credit Rating To 'BBB' | Old North State Wealth News
Connect with us

US News

DBRS Morningstar cuts Credit Suisse credit rating to ‘BBB’



© Reuters. FILE PHOTO: A view shows a signage of Swiss bank Credit Suisse in front of an office building in Zurich, Switzerland March 16, 2023. REUTERS/Denis Balibouse

(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.

Read the full article here

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


Copyright © 2022 ONSWM News. Content posted on the Old North State Wealth News page was developed and produced by a third party news aggregation service. Old North State Wealth Management is not affiliated with the news aggregation service. The information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date the articles were published. The information presented is not an offer to buy or sell, or a solicitation of any offer to buy or sell, any of the securities discussed.