DBRS Morningstar cuts Credit Suisse credit rating to 'BBB'

(Reuters) -DBRS Morningstar became the first global rating agency to cut Credit Suisse's credit score on Thursday, less than a day after a major share price plunge saw Switzerland's central bank provide emergency support to the lender.

The move follows Moody's earlier saying it will monitor Credit Suisse's situation and "act appropriately" regarding its rating.

DBRS cut the bank's issuer rating to 'BBB' as it "continues to report missteps and compliance failures, resulting in a visible weakening of the franchise," and said the holding company's "ability to restore stakeholders' confidence" is concerning.

A slide in Credit Suisse's shares had threatened to spiral into a wider banking crisis on Wednesday, while some analysts said the Swiss National Bank's $54-billion loan has only bought the lender some time to work out what to do next.

Bank stocks tumbled across the world on Monday after the sudden collapse of Silicon Valley Bank and Signature Bank forced U.S. emergency measures to ensure the safety of the banking system.

(Reporting by Rodrigo Campos, Lawrence White and Marc Jones; Editing by Sandra Maler)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Microsoft reveals Azure cloud sales in financial reporting shift
• Uber stock gains 2% as tech giant cuts 3,300 jobs in major restructuring
• Could Apple’s foldable iPhone be a $14B opportunity? Morgan Stanley weighs in