DBRS cuts Credit Suisse

DBRS said it downgraded the long-term issuer rating of Credit Suisse AG to BBB from A (low) and the long-term issuer rating of Credit Suisse Group AG, the top-level holding company to BBB (low) from BBB (high).

The agency explained the downgrade considers that the group continues reporting missteps and compliance failures, weakening the franchise as demonstrated by the deposit outflows in Q4 2022, alongside high costs.

“Today’s rating action reflects DBRS Morningstar’s increasing concerns over the group’s ability to restore stakeholders’ confidence. The current market volatility affecting the financial sector globally has added to the negative impact resulting from CSG’s recent compliance failures, and this has led to a significant decline in Credit Suisse’s market capitalization,” the agency said in a press release.

The trend is negative.

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