Fitch cuts Credit Suisse notes

Fitch Ratings said it cut Credit Suisse Group AG's additional tier 1 debt ratings to C from BB-, following the decision by the Swiss regulator that the nominal value of these instruments should be written down to zero. The agency also placed the group’s BBB long-term issuer default rating and the IDRs of its subsidiaries on rating watch evolving.

“The RWE reflects the heightened likelihood that the ratings will be upgraded if the bank's merger with UBS Group AG proceeds as planned because the resulting business combination will likely result in improvements to Credit Suisse's franchise and business model, risk management and funding and liquidity profiles. The transaction is expected by UBS to close in 2Q23. The RWE also signals the risk of a downgrade should the transaction fail,” Fitch said in a press release.

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