(Finance) – Two days after S&P Global Ratings, Fitch Ratings also has cut the rating from Credit Suissebringing judgment to “BBB +” from “A-” with stable outlook. The downgrade reflects Fitch’s view that “the poor operating profitability Credit Suisse compared to that of its competitors highlights the execution risk during the restructuring of the group in a difficult market environment and highlights the bank’s challenges to strengthen its performance over the next 24 months, as well as its risk governance “, reads a note.
The stable outlook reflects the opinion of the rating agencies that the Swiss banking group “has a sufficient room for maneuver to withstand a weaker period of profitability if the group maintains its position. “Failure to implement the strategic plan would, however, put” pressure on Credit Suisse’s core wealth management and investment banking activities and indicate weaknesses in its business model. “
With regard to risk management, Fitch highlights that Credit Suisse has been working to strengthen its risk management and control framework since the second quarter of 2021 and the governance remains one of the key areas of its strategic plan. “We anticipate that the full integration of a better risk culture will take some time and that the governance gaps that emerged in 2021 will be addressed,” reads the rating agency’s analysis.