Credit rating agencies S&P and Moody's have downgraded their outlook for Swiss bank UBS Group to ‘negative’ after its agreed SFr3bn ($3.25bn) takeover of troubled rival Credit Suisse.
S&P and Moody's had both previously rated UBS as ‘stable'. Explaining the downgrade, S&P said on Monday (20 March) that it saw "material execution risk in integrating Credit Suisse into UBS". The reason given for this analysis was "the size and weaker credit profile of CS and particularly the complexity in winding down a large part of CS' investment banking operations". UBS agrees to buy Credit Suisse for $3.3bn Rival credit rating agency Moody's said today (21 March) that the transaction "poses significant financial, cultural and franchise related integration challenges for UBS...
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