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]
Posted by guest , Nov 18, 2009 1:49PM
UBS sucks
Sincerely,
Ben Lorello
Posted by CoveredLong , Nov 18, 2009 1:51PM
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
Posted by guest , Nov 18, 2009 2:01PM
Of all the times you've used the "sucks" tag, I believe you've missed a golden opportunity.
-GRB
Posted by guest , Nov 18, 2009 2:02PM
Of all the times you've used the "sucks" tag, I believe you've missed a golden opportunity.
-GRB
Posted by pfluger , Nov 18, 2009 2:07PM
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
Posted by guest , Nov 18, 2009 2:15PM
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?
Posted by guest , Nov 18, 2009 2:24PM
@6 Worse than JTMarlin
Posted by guest , Nov 18, 2009 2:26PM
i think vin diesel left JT to run fixed income
Posted by guest , Nov 18, 2009 4:46PM
@5 UBS is a good candidate for Melissa Moody's ratings Alternative.
Posted by guest , Nov 20, 2009 9:08AM
the management is so corrupt at this firm it's disgusting. The most mediocre people are in positions of leadership