The ratings of Credit Suisse are driven by the group’s strong and resilient wealth management franchise as well as its position as a leading universal bank in Switzerland. Credit Suisse aims to be a leading wealth manager with strong investment banking capabilities.

Scope views positively what management has achieved under the recently completed three-year restructuring plan. The group’s business model has been refocused, with more resources being allocated towards wealth management while the exposure to markets-related businesses has been reduced and de-risked. In addition, the group’s solvency position is now at more reassuring levels due to capital increases, asset reductions and retained earnings.

Changes made over the last few years such as lowering the cost base, increasing the share of more stable revenues and strengthening risk management have enhanced the group’s resilience. However, Credit Suisse continues to be active in businesses such as leveraged lending, high-yield and securitisation which are more sensitive to volatility in market conditions and sentiment. A less supportive operating environment could hamper the group’s ability to generate more sustainable and higher earnings.

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