Moody’s has downgraded both Coinbase’s long-term credit rating as well as its guaranteed senior unsecured notes, citing “substantially weakened revenue and cash flow generation capacity.” By HeleneBraunn
Credit-ratings giant Moody’s has downgraded both Coinbase’s long-term credit rating as well as its guaranteed senior unsecured notes, it said Friday, citing “substantially weakened revenue and cash flow generation capacity.”
Coinbase’s corporate family rating , a long-term rating that reflects the relative likelihood of a default on a corporate family's debt, was lowered from Ba3 to B2, both considered non-investment grades. Guaranteed senior unsecured notes were downgraded from B1 to Ba2, the company said. “The rating action reflects Coinbase's substantially weakened revenue and cash flow generation capacity due to the challenging conditions in the crypto asset operating environment characterized by steep declines in crypto asset prices and lower customer trading activity,” Moody’s said. “Moody's expects the company's profitability to remain challenged despite its [Jan. 10] announcement of a reduction in its global workforce of around 950 employees.
“Although increased regulatory oversight could ultimately favor the relatively more mature and compliant crypto asset platforms such as Coinbase, Moody's said that the path to changes and enhancements in the regulatory framework is highly uncertain and could prove disruptive to crypto market participants.”its long-term credit rating and senior unsecured debt rating on Coinbase, for similar reasons.
Shares of Coinbase dropped 86% in 2022, partly because trading volume for cryptocurrencies, which continues to be Coinbase’s main revenue stream, slowed after crypto prices dropped sharply during the year, and crypto firms including Three Arrows Capital, Celsius Network and FTX collapsed.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Morgan Stanley downgrades Roblox, says it's time to sell the video game stockThe firm downgraded shares of the video gaming company to underweight from equal weight, saying upside is limited from here.
Les mer »
BofA downgrades Schwab by two notches as stock extends slide for second dayAnalyst Craig Siegenthaler cuts rating on Schwab to underperform from buy and slashes price target to $75 from $94 as investors migrate to money-market funds.
Les mer »
Fed policymakers call for further rate hikes to beat inflationFederal Reserve policymakers on Wednesday signaled they will push on with more interest rate hikes, with several supporting a top policy rate of at least 5% even as inflation shows signs of having peaked and economic activity is slowing.
Les mer »
AUD/USD tumbles further to near 0.6900 on downbeat Australian Employment dataThe AUD/USD pair has extended its downside journey to near 0.6900 as the Australian Bureau of Statistics has reported weaker-than-projected Employment
Les mer »
Twitter plans further layoffs - InsiderTwitter Inc plans to lay off 50 workers in the social media site's product division in the coming weeks, news site Insider reported on Wednesday, citing two people familiar with the company.
Les mer »