Moody's Downgrades Coinbase, Citing "Uncertain Magnitude" of SEC Charges
Meanwhile, financial services firm Berenberg Capital told Cointelegraph that it considers Coinbase shares to be "uninvestable" for the short term. term.
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Credit rating agency Moody's downgraded Coinbase's rating from 'stable' to 'negative' following SEC legal action against the crypto exchange for allegedly operating as a unregistered stockbroker.
In a June 8 statement, Moody's said the downgrade was due to concerns about the impact of the Securities and Exchange Commission action on Coinbase's day-to-day operations.
“The change in outlook from negative to stable reflects the uncertain extent of the impact the SEC charges will have on Coinbase's business model and cash flow.”
Despite the downgrade, Moody's noted that Coinbase maintains a "strong" liquidity position. The rating agency viewed the company's $5 billion in cash and cash equivalents favorably, compared to its $3.4 billion in long-term debt.
MOODY'S: COINBASE OUTLOOK IN STABLE NEGATIVES.
— Latest Market News (@financialjuice) June 8, 2023The company added that it expects Coinbase to maintain its “spend management focus” that has been successful in mitigating declines in transaction revenue in the past.
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Meanwhile, financial services firm Berenberg Capital told Cointelegraph that it considers Coinbase shares to be "uninvestable" for the short term. term.
News
Join us on social networks
Credit rating agency Moody's downgraded Coinbase's rating from 'stable' to 'negative' following SEC legal action against the crypto exchange for allegedly operating as a unregistered stockbroker.
In a June 8 statement, Moody's said the downgrade was due to concerns about the impact of the Securities and Exchange Commission action on Coinbase's day-to-day operations.
“The change in outlook from negative to stable reflects the uncertain extent of the impact the SEC charges will have on Coinbase's business model and cash flow.”
Despite the downgrade, Moody's noted that Coinbase maintains a "strong" liquidity position. The rating agency viewed the company's $5 billion in cash and cash equivalents favorably, compared to its $3.4 billion in long-term debt.
MOODY'S: COINBASE OUTLOOK IN STABLE NEGATIVES.
— Latest Market News (@financialjuice) June 8, 2023The company added that it expects Coinbase to maintain its “spend management focus” that has been successful in mitigating declines in transaction revenue in the past.
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