S&P trims UBS' outlook to Negative on merger execution risk, Moody's place Credit Suisse on review2 min read 21 Mar 2023, 05:53 PM IST
While lowering outlook on UBS, in the base case, S&P anticipates client churn at the combined entity, particularly in wealth management and Swiss banking, where both entities have significant client overlaps.Moody's placed Credit Suisse on review for upgrading all long-term ratings and assessments. The outlook for the company and its rated subsidiaries was changed to ratings under review from negative.
S&P Global Ratings lowered its outlook on UBS Group AG to 'Negative' from the earlier 'Stable' outlook due to execution risk in the acquisition of embattled Credit Suisse. On the other hand, Moody's Investors Service placed Credit Suisse on review for an upgrade of all long-term ratings and assessments. Led by Swiss regulators both UBS and Credit Suisse this week agreed to a $3.25 billion merger for restoring confidence in the country's economy and banking systems. UBS to takeover Credit Suisse by end of 2023.
Select your Category