rating agency Moody’s It said on Thursday that it had “downgraded Coinbase Global, Inc.’s Corporate Family Rating (CFR) to Ba3 from Ba2.
“This rating is under review for further downgrades,” the agency added.
Baa3 Rating meancredit risk level “Medium” and represents the lowest level of institutional credit.
“…Coinbase’s dramatic decline in revenue and cash flow was due to the sharp drop in crypto asset prices over the past several months. and reduced client trading activity, where Moody’s expects the company’s profitability to remain challenged in the current environment. There was even an announcement of around 1,100 global workforce cuts on June 14.”
for the question How to assess Coinbase’s ranking in the future, Moody’s said it will weigh factors such as costs, regulatory developments, and more. and the overall state of the crypto market as it relates to the volume and revenue of the exchange.
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