DBRS acts on Credit Suisse

DBRS said it took rating actions on Credit Suisse AG (the bank) and Credit Suisse Group AG (CSG) following the announcement of its acquisition by UBS.

DBRS downgraded both entities’ long-term issuer ratings to Selective Default from BBB negative trend and BBB (low) negative trend, respectively. The SD rating follows the complete write-down to zero of around CHF 15.8 billion of additional tier one securities.

DBRS said it now applies an SA1 support designation to Credit Suisse Group AG. As a result, the agency boosted their remaining debt obligations, including Credit Suisse AG’s senior unsecured long-term debt rating to AA (low) from BBB. These ratings are under review with negative implications, in line with UBS’ ratings.

On Sunday, UBS reported it will acquire Credit Suisse following close coordination with the Swiss Financial Markert Authority, the Swiss Confederation and the Swiss National Bank.

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