S&P, Moody's put UBS on downgrade review after $2bn loss

Ratings agencies S&P and Moody's have placed UBS' Aa3 rating on review for downgrade following its $2bn unauthorised trading loss.

Moody's said the primary focus of its review, which also encompasses the bank's C/A3 standalone financial strength rating, was the "ongoing weaknesses in the group's risk management and controls that have become evident again". Standard & Poor's said it was placing UBS' A+ rating on credit watch with negative implications. UBS shares fell 11% yesterday after it emerged the firm's London-based trader Kweku Adoboli had been arrested on suspicion of fraud and abuse of position. The incident is a major blow for the bank and comes at a time when financial institutions across Europe are ...