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Wednesday, November 18, 2009
Moody's Cuts UBS To 'Aa3'; Outlook Negative
By Sue Chang
MarketWatch Pulse
SAN FRANCISCO -- Moody's Investors Service on Wednesday lowered UBS AG's ratings on deposits and senior debt to Aa3 from Aa2 while its bank financial strength rating and the long-term debt rating were cut to C from B-. "The two-notch downgrade of UBS AG's BFSR reflects Moody's view of the considerable challenges that UBS continues to face in both its Investment Banking and Wealth Management businesses. The bank has suffered a loss of customer confidence, as demonstrated by the ongoing net new money outflows in wealth management, and a loss of key employees, as demonstrated by the loss of revenues in investment banking, especially in fixed income. While both of these areas are beginning to show early signs of a turnaround, Moody's believes these challenges are unlikely to be short-lived," the ratings agency said in a statement. The outlook for all of UBS' ratings is negative.
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