Moody's Investors Service — a rating arm of Moody's Corporation (MCO - Free Report) — affirmed the ratings of Credit Suisse Group AG . The banking giant’s Baa2 senior unsecured debt ratings were affirmed along with its principal bank subsidiary, Credit Suisse AG’s A1 long-term senior unsecured debt and deposit ratings.
The bank’s baa2 baseline credit assessment (BCA), baa2 adjusted BCA and A1(cr)/P-1(cr) Counterparty Risk (CR) Assessment were maintained too, along with all the long and short-term ratings.
Further, all of the company’s subsidiaries’ senior unsecured debt, issuer and deposit ratings were also affirmed.
The rating firm’s outlook for the bank remains “stable.”
Rationale Behind the Affirmation
As Credit Suisse’s three-year restructuring program is nearing the end, Moody’s believes that the bank will experience some burden as a result of de-risking and business re-alignment in 2018, which will put pressure on its profitability. Thus, even though the company’s performance remained solid, outlook remained unchanged. Also, pressure on profitability is anticipated as the disposition of the non-core assets continues.
However, Moody’s expects the company’s profitability to be benefited as a result of the reduction in expenses. Further, steady earnings provide support to the ratings. Also, despite the regulatory pressure, Credit Suisse is likely to maintain its capital position.
The outlook reflects a robust capital position, decent management of risk and sound liquidity position.
Credit Suisse currently carries a Zacks Rank #5 (Strong Sell). Its stock has lost around 11.7% over the last three months, compared with 6.7% decline recorded by the industry.
Stocks to Consider
BanColombia S.A. (CIB - Free Report) carries a Zacks Rank #2 (Buy). Its earnings estimates for 2018 have been revised 7.3% upward over the last 60 days. Also, its shares have gained 14.6% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Bank of N.T. Butterfield & Son Limited (NTB - Free Report) carries a Zacks Rank of 2. In the last 60 days, the Zacks Consensus Estimate for the company jumped 1.2% for the current year. Its share price has gained 40.4% in the past year.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Moody's Investors Service — a rating arm of Moody's Corporation (MCO - Free Report) — affirmed the ratings of Credit Suisse Group AG . The banking giant’s Baa2 senior unsecured debt ratings were affirmed along with its principal bank subsidiary, Credit Suisse AG’s A1 long-term senior unsecured debt and deposit ratings.
The bank’s baa2 baseline credit assessment (BCA), baa2 adjusted BCA and A1(cr)/P-1(cr) Counterparty Risk (CR) Assessment were maintained too, along with all the long and short-term ratings.
Further, all of the company’s subsidiaries’ senior unsecured debt, issuer and deposit ratings were also affirmed.
The rating firm’s outlook for the bank remains “stable.”
Rationale Behind the Affirmation
As Credit Suisse’s three-year restructuring program is nearing the end, Moody’s believes that the bank will experience some burden as a result of de-risking and business re-alignment in 2018, which will put pressure on its profitability. Thus, even though the company’s performance remained solid, outlook remained unchanged. Also, pressure on profitability is anticipated as the disposition of the non-core assets continues.
However, Moody’s expects the company’s profitability to be benefited as a result of the reduction in expenses. Further, steady earnings provide support to the ratings. Also, despite the regulatory pressure, Credit Suisse is likely to maintain its capital position.
The outlook reflects a robust capital position, decent management of risk and sound liquidity position.
Credit Suisse currently carries a Zacks Rank #5 (Strong Sell). Its stock has lost around 11.7% over the last three months, compared with 6.7% decline recorded by the industry.
Stocks to Consider
BanColombia S.A. (CIB - Free Report) carries a Zacks Rank #2 (Buy). Its earnings estimates for 2018 have been revised 7.3% upward over the last 60 days. Also, its shares have gained 14.6% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Bank of N.T. Butterfield & Son Limited (NTB - Free Report) carries a Zacks Rank of 2. In the last 60 days, the Zacks Consensus Estimate for the company jumped 1.2% for the current year. Its share price has gained 40.4% in the past year.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Download it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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