# Credit Suisse Group rating downgraded by S&P Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-05-17 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Credit Suisse Credit Rating Downgraded to BBB by Standard Meta Description: Credit Suisse's credit rating has been cut to BBB by rating agency S&P following first quarter loss and scandal fallout. Uphill battle ahead. URL: https://financedigest.com/credit-suisse-group-rating-downgraded-by-sphtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-05-17t070209z2lynxnpei4g095rtroptp4credit-suisse-gp-climate-vote-1736815714464-compressed.jpg) ZURICH (Reuters) -Credit Suisse Group AG’s credit rating has been downgraded to BBB from BBB+ by Standard & Poors, a blow for the Swiss bank which reported a first quarter loss and is facing increasing shareholder unrest following a string of scandals. Its outlook was changed to stable from negative, the rating agency said. Credit Suisse reported a first-quarter loss last month and launched a management overhaul after racking up billions in losses during 2021 from failed investments. [Investors voiced their discontent by rejecting the board’s](https://www.financedigest.com/institutional-investors-back-shell-board-lawsuit-over-climate-risk.html "Institutional investors back Shell board lawsuit over climate risk") proposal to discharge management from liabilities for the 2020 financial year at the bank’s annual general meeting in April. The bank has been trying to reform its [risk management](https://www.financedigest.com/aon-announces-agreement-to-acquire-risk-management-firm-creating-a-comprehensive-cyber-risk-management-advisory-group.html "Aon announces agreement to acquire risk management firm, creating a comprehensive cyber risk management advisory group") culture after a series of costly scandals, which have prompted multiple rounds of management shake-ups, abrupt departures, and internal and external investigations. But S&P said a turnaround from scandals such as the Archegos affair, Greensill and others would not be quick. [Credit Suisse](https://www.financedigest.com/mitsubishi-ufj-to-postpone-at1-bond-issuance-in-credit-suisse-fallout.html "Mitsubishi UFJ to postpone AT1 bond issuance in Credit Suisse fallout") was hit by twin scandals in March 2021, when the implosion of U.S. investment firm Archegos led to a $5.5 billion hit and $10 billion worth of its [supply chain finance](https://www.financedigest.com/5-steps-to-successful-supply-chain-finance.html "5 Steps to successful supply chain finance") funds (SCFF) linked to now-insolvent British financier Greensill were shuttered. It is still working to recoup [assets for SCFF investors](https://www.financedigest.com/4-ways-todays-investor-can-future-proof-their-assets.html "4 Ways Today’s Investor Can Future Proof their Assets"). Although the group is actively working on remediation actions, we think a lasting change to the risk culture in such a [complex global](https://www.financedigest.com/2017-global-payroll-complexity-index-reveals.html "2017 Global Payroll Complexity Index Reveals ") organization will take time,” the agency said. We now think this will be even more difficult in a deteriorating [economic and business](https://www.financedigest.com/sme-productivity-programme-re-purposed-to-help-businesses-prepare-for-covid-19-economic-recovery.html "SME productivity programme re-purposed to help businesses prepare for Covid-19 economic recovery") environment. S&P said it saw [see management targets to restore profitability](https://www.financedigest.com/britains-next-sees-lower-profit-in-2023-as-consumer-outlook-darkens.html "Britain’s Next sees lower profit in 2023 as consumer outlook darkens") as ambitious, particularly in view of the management upheaval and economic uncertainties. In our view, the group’s risk-return is likely to remain below that of its key competitors and other highly rated peers, at least over the [medium term,”](https://www.financedigest.com/ubisoft-vows-to-get-back-to-operating-margin-above-20-in-medium-term.html "Ubisoft vows to get back to operating margin above 20% in medium term") S&P said. The ratings downgrade widens the [gap between Credit](https://www.financedigest.com/addressing-the-credit-gap-to-unlock-economic-growth-in-africa.html "Addressing the credit gap to unlock economic growth in Africa") Suisse and biggest rival, which has an A- rating and stable outlook from Standard & Poor’s and an A+ rating with stable outlook from Fitch. Fitch has kept [Credit Suisse](https://www.financedigest.com/swiss-franc-grapples-with-safe-haven-identity-crisis-after-credit-suisse.html "Swiss franc grapples with safe-haven identity crisis after Credit Suisse") at an A- long-term rating with a negative outlook since April 2021. The downgrade also places [Credit Suisse](https://www.financedigest.com/credit-suisse-54-billion-lifeline-offers-limited-respite-to-global-banks.html "Credit Suisse billion lifeline offers limited respite to global banks") behind U.S. rival [Morgan Stanley](https://www.financedigest.com/morgan-stanley-others-now-forecast-4-peak-for-key-ecb-rate.html "Morgan Stanley, others now forecast 4% peak for key ECB rate"), which has a BBB+ rating with positive outlook from Standard & Poors and an A rating with positive outlook from Fitch. [British bank](https://www.financedigest.com/crown-agents-bank-owner-explores-sale-of-british-payments-group-sources.html "Crown Agents Bank owner explores sale of British payments group –sources") Barclays has a BBB long-term rating from Standard & Poor’s with a positive outlook while its ‘A’ rating from Fitch also places it above Credit Suisse. (Reporting by John Revill and Brenna Hughes Neghaiwi; editing by Louise Heavens and Jason Neely) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---