Credit Suisse Cut to One Level Above Junk Status by S&P
- S&P cuts bank’s long-term rating to BBB-, with stable outlook
- Chairman Lehmann said capital raise to make bank ‘rock solid’
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Credit Suisse Group AG’s long-term rating was downgraded by S&P Global Ratings to just one level above junk status, underscoring the bank’s challenges after it laid out a radical restructuring plan last week.
The Swiss bank’s long-term rating was cut to BBB- from BBB, with a stable outlook. That’s just one notch above the BB “speculative grade.” The US ratings firm, echoing several analysts after the restructuring was announced on Thursday, said it sees “material execution risks amid a deteriorating and volatile economic and market environment.” It also signaled that some details around asset sales remain “unclear.”