Moody's downgrades Julius Baer Group

Moody's Investors Service said it downgraded ratings of Bank Julius Baer & Co. Ltd. and Julius Baer Group Ltd. The agency downgraded Bank Julius Baer's long-term issuer ratings to A3 from A2. The outlook is stable.

Furthermore, Moody's downgraded Julius Baer Group's rating to Baa1 from A3 with a stable outlook. The rating agency also downgraded the group's low-trigger additional tier 1 securities to Baa3(hyb) from Baa2(hyb) but affirmed the group's high-trigger AT1 securities at Baa3(hyb).

The rating actions were triggered by an announcement of the Swiss Financial Market Supervisory Authority on Feb. 20 saying that Julius Baer had significant shortcomings in anti-money laundering procedures and imposed several measures to remediate findings, including changes to the group's remuneration and disciplinary policy, strengthening its compliance and banning large acquisitions until meeting regulatory expectations.

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