NEW YORK—Rating agency Moody’s Investors Service expects losses for Credit Suisse to swell to $3 billion by year-end, potentially bringing its core capital below the key 13 percent level, Moody’s lead analyst on the bank told Reuters.
Credit Suisse has reported 1.9 billion francs ($1.92 billion) of losses in the first half of the year. In July, the bank said it expected to operate with a common equity tier 1 (CET1) ratio of between 13 percent and 14 percent for the rest of 2022.
“We are forecasting further losses in the second half of the year,” said Alessandro Roccati, senior vice president in the financial institutions group of the rating agency. “We’re looking at $3 billion losses for the full year, which means the CET1 is going to be slightly below 13 percent.”…