On Feb. 19, 2008, Standard&Poor's Ratings Services placed its 'AA-/A-1+' counterparty credit rating on Credit Suisse on CreditWatch with negative implications. At the same time, we placed our long-term counterparty credit rating on Credit Suisse Group (CSG; A+/A-1), the holding company, on CreditWatch with negative implications. These actions follow CSG's announcement today that, as of first-quarter 2008, the company has made CHF3.1 billion ($2.85 billion) in write-downs, following regular control and pricing reviews of its structured credit trading function, based on market price deterioration in 2008. The net cost is estimated at CHF1.1 billion ($1 billion) after compensation adjustments and tax. These ongoing reviews have revealed that an unspecified amount of the markdowns is attributable to traders' mismarking
