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 are also based on the group's overall sound asset quality, and continued strong liquidity. CSG's consolidated capitalization continues to be pressured by limited internal capital generation; however, the group has taken measures to strengthen its capital base, as reflected in the gradual improvement in regulatory capital adequacy in the first quarter of 2003. Consolidated operating performance in the first quarter also improved, as the various initiatives that the group has undertaken to address both its structural problems and a changing operating environment have begun to pay off. Nevertheless, performance remains weak, with sustained harsh operating
