Coinbase downgraded by Moody's, may be cut further

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Coinbase downgraded by Moody's, may be cut further
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Moody's Investors Service said Thursday that it 'downgraded Coinbase Global, Inc.'s (Coinbase) Corporate Family Rating (CFR) to Ba3 from Ba2 and downgraded its guaranteed senior unsecured notes to Ba2 from Ba1.'

Moody’s Investors Service said Thursday that it “downgraded Coinbase Global, Inc.’s Corporate Family Rating to Ba3 from Ba2 and downgraded its guaranteed senior unsecured notes to Ba2 from Ba1.”

The move came in the wake of company layoffs and tough first-quarter results for the US crypto exchange. Ratings agency Moody's said Thursday that it downgraded US crypto exchange Coinbase's senior unsecured notes.it"downgraded Coinbase Global, Inc.'s Corporate Family Rating to Ba3 from Ba2 and downgraded its guaranteed senior unsecured notes to Ba2 from Ba1."to a"moderate" degree of credit risk and represents the lowest level of institutional-grade creditworthiness."...

On the question of how it will assess Coinbase's ratings moving forward, Moody's said it would weigh factors like expenses, regulatory developments and the overall state of the crypto market as it relates to the exchange's volume and revenues.© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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