Credit Suisse Group AG and Credit Suisse AG

The stable outlooks reflect our expectation that Credit Suisse will maintain robust capital, funding, and liquidity positions to mitigate the risks inherent in the implementation of the new strategy. We expect the bank will steadily execute its transformation plan, delivering on the targets that are fully within its control (such as cost cutting) and applying strong risk management and governance to the investment bank downsizing. We could lower the ratings on Credit Suisse Group AG and its operating subsidiaries over the next 12-24 months if: The bank fails to stabilize and rebuild confidence in its core businesses and its reshaped franchise is materially weaker than we currently anticipate. We will assess flows in assets under management and deposits relative to

...The group is undergoing a fundamental restructuring to address persistently underperforming investment bank and elevated cost base. Through its transformation plan, announced in October 2022, Credit Suisse intends to transition to a more resilient and capital-efficient business model that primarily focuses on wealth management, asset management, and Swiss banking by 2025. The group expects the restructuring of the investment bank will reduce the investment bank's capital allocation by about 40% by 2025, which will improve the quality and stability of total revenues over the longer run. In its investment bank, Credit Suisse will retain only areas with high connectivity to other integral businesses,, particularly Cross Asset Investor Products, equities, and foreign exchange. The group has entered into the agreements to sell a majority interest in its securitized products business and it plans to carve out capital markets and advisory businesses into a separate entity, CS First Boston. A noncore...

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