Fitch places UBS on negative watch

Fitch Ratings said it placed UBS Group AG's A+ long-term issuer default rating and the AA- long-term IDRs of UBS AG and UBS Switzerland AG on rating watch negative (RWN).

The negative watch follows Sunday’s announcement that UBS agreed to acquire Credit Suisse Group AG, the agency said.

“The RWN reflects the uncertain implications of the acquisition on the combined credit profile of the two banks. It also reflects the execution risk that will arise for UBS from the acquisition, as well as the potential weakening of UBS's business, risk, and financial profile during the integration and restructuring of Credit Suisse in an increasingly challenging environment,” Fitch said in a press release.

The agency said it aims to resolve the RWN when enough information on the acquisition’s effect becomes available.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.