Moody's downgrades UBS ratings
Global ratings agency Moody's on Wednesday downgraded Swiss banking giant UBS's financial strength.New York -- Global ratings agency Moody's on Wednesday downgraded Swiss banking giant UBS's financial strength and long-term debt and deposit ratings, citing loss of customer confidence and key employees.
It downgraded by two notches UBS's bank financial strength rating to C from B- while the ratings for deposits and senior debt were lowered to Aa3 from Aa2 and those for senior subordinated debt lowered to A1 from Aa3.
The bank's Prime-1 short-term ratings were affirmed.
The downgrade of UBS's bank financial strength rating "reflects Moody's view of the considerable challenges that UBS continues to face in both its investment banking and wealth management businesses," Moody's Investors Service said in a statement.
"The bank has suffered a loss of customer confidence, as demonstrated by the ongoing net new money outflows in wealth management, and a loss of key employees, as demonstrated by the loss of revenues in investment banking, especially in fixed income," it said.
While both of these areas are beginning to show early signs of a turnaround, Moody's said "these challenges are unlikely to be short-lived."
AFP / Expatica