Moody’s might raise UBS

Moody's Investors Service said it placed UBS Group AG's long-term ratings, as well as the long-term senior unsecured debt and deposit ratings of its subsidiaries, including its principal bank subsidiary, UBS AG, on review for upgrade.

The agency also placed all of UBS entities' long-term ratings under review for upgrade, including UBS Group AG's Ba1 (hyb) preferred stock ratings as well as UBS AG's Aa3 long-term deposit ratings and A1 long-term issuer and senior unsecured debt ratings.

UBS AG's baa1 baseline credit assessment, baa1 adjusted BCA and Aa3(cr) counterparty risk assessment were also placed under review for upgrade.

In addition, Moody’s affirmed the Baa2 senior unsecured debt ratings of Credit Suisse Group AG and the A1 long term senior unsecured debt and deposit ratings of its principal bank subsidiary, Credit Suisse AG, with a stable outlook.

It also affirmed Credit Suisse AG's baa2 baseline credit assessment, baa2 adjusted BCA and A1(cr)/P-1(cr) counterparty risk assessment, as well as all of its other long- and short-term ratings. The senior unsecured debt, issuer as well as deposit ratings of all of Credit Suisse's subsidiaries were also affirmed.

“The review for upgrade on UBS' long-term ratings takes account of UBS' reduction in capital intensive capital market activities and the curtailment of a large number of inherently more volatile fixed income product lines,” the agency said in a news release.

“In Moody's view, this has resulted in a less complex investment banking operation, more aligned with its wealth and asset management businesses and more focused on less capital-intensive and flow-based capital markets segments such as Equities, Foreign Exchange (FX) and Advisory.”

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