• 18 Nov 2009 at 1:42 PM

UBS Not So Much On The Road To Recovery

By John Shazar

UBS thinks it has its whole, unpleasant financial situation figured out. Moody’s Investors Service is somewhat less sure.
The ratings agency slashed UBS’s deposit and senior debt ratings from double-A-2 to double-A-3. Its financial strength rating and long-term debt rating took an even bigger hit, falling to C to B-minus.

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.


In other words, abetting tax evasion is good business. Getting hammered for it is not good business. Profit is good. Having to wait up to five years for it is not good.
Adding insult to injury, Moody’s left the bank’s outlook at negative.
Moody’s cuts UBS to ‘Aa3′; outlook negative [MarketWatch]
UBS Outlines Path to Profit [WSJ]

Comments (12)

  1. 1
    Posted by guest | November 18, 2009 at 1:49 PM

    UBS sucks
    Sincerely,
    Ben Lorello

  2. 2
    Posted by CoveredLong | November 18, 2009 at 1:51 PM

    Jon,
    I’m going to email you a tip saying Moody’s has changed it’s outlook from negative to stable…forcing you to navigate away from pornhub and on to google to conduct an ultimately fruitless search.
    -NJMBAFOHW

  3. 3
    Posted by guest | November 18, 2009 at 2:01 PM

    Of all the times you’ve used the “sucks” tag, I believe you’ve missed a golden opportunity.
    -GRB

  4. 4
    Posted by pfluger | November 18, 2009 at 2:07 PM

    Jon – you might just want to describe the ratings the way they do: Aa2 to Aa3. People here (except cg, of course) understand that, even if Moody’s speaks in vague weasel words….
    - guy who suffered through too many rating agency credit reports

  5. 5
    Posted by guest | November 18, 2009 at 2:15 PM

    worst firm in the history of wall street. they can’t get out of their own way…poor management. When does the stock go to zero?

  6. 6
    Posted by guest | November 18, 2009 at 2:24 PM

    @6 Worse than JTMarlin

  7. 7
    Posted by guest | November 18, 2009 at 2:26 PM

    i think vin diesel left JT to run fixed income

  8. 8
    Posted by guest | November 18, 2009 at 4:46 PM

    @5 UBS is a good candidate for Melissa Moody’s ratings Alternative.

  9. 9
    Posted by guest | November 20, 2009 at 9:08 AM

    the management is so corrupt at this firm it’s disgusting. The most mediocre people are in positions of leadership

  10. 10
    Posted by Arnie | December 13, 2011 at 5:04 AM

    Great article but it didn’t have everything-I didn’t find the kitcehn sink!

  11. 11
    Posted by zzwpyescex | December 13, 2011 at 1:30 PM

    DZqMji pcmspzcbbwjj

  12. 12
    Posted by zogufgbe | December 15, 2011 at 5:14 AM

    UB0EVX fmslujydlivg

Leave a comment

You can log in with your account or comment as a guest below.

   or