The ratings on Credit Suisse Group (CSG) reflect the group's strong market positioning, which is supported by a well-diversified business and geographic profile. The ratings also reflect the group's overall sound asset quality, as well as strong liquidity and funding on a consolidated basis. These elements are offset, however, by CSG's poor consolidated operating performance over the past 18 months, which has contributed to pressure on the group's capitalization. With weak operating conditions likely to persist into 2003, Standard&Poor's does not expect the group's profitability to improve substantially in the near term. In addition to the ensuing curtailment in earnings capacity, capitalization has been substantially affected by poor investment performance and capital needs at Winterthur, the group's insurance
