© Reuters. FILE PHOTO: A view shows a signage of Swiss bank Credit Suisse in front of an office building in Zurich, Switzerland March 16, 2023. REUTERS/Denis Balibouse
(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.
DBRS downgraded the issuer rating of the bank to ‘BBB’ as it “continues to report missteps and compliance failures, resulting in a visible weakening of the franchise” and said the parent company’s “ability to restore stakeholders’ confidence” is concerning.
Credit Suisse’s share tumble on Wednesday had threatened to spiral into a wider banking crisis, but a lifeline from the Swiss National Bank helped ease fears and at least temporarily stabilize the market.