Fitch Ratings says it has downgraded Swiss bank UBS’ long-term issuer default rating to A from A+.
It said in a statement that its view was that “the one-notch uplift for close affiliation with the Swiss state is no longer warranted”.
The ratings agency was reacting to the lessening of state support for the bank, which had been bailed out in 2008. At the end of September this year parliament approved stricter banking regulations – tougher than international ones – to prevent a repeat of the situation.
Fitch also placed seven other United States and European banks on credit watch negative as part of a global review. Challenges in the economy and financial markets were cited as reasons for its decision.
The downgrade comes during turbulent times for the bank, which has been shaken by a rogue trading scandal involving the loss of $2.3billion (SFr2.06 billion) in unauthorised trades.
Nevertheless UBS has said that it expected to make a small profit in the third quarter.
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