Latest report just out
- the outlook for Switzerland’s (Aaa stable) banking system has been changed to negative from stable, principally because the likelihood of support for senior creditors from the Swiss government in the event of need is diminishing
Moody’s says that over the past two years, the Swiss authorities have made significant progress in implementing a credible and flexible resolution framework that includes provisions for burden-sharing with senior creditors. The evolution of the Swiss bank resolution regime and the accelerating global trend towards the use of burden-sharing tools are likely to lead to a diminishing support for senior creditors from the Swiss government in the event of need. These developments further increase the probability of a downward adjustment of Moody’s current systemic support assumptions for Swiss banks
Full report here. USDCHF unfazed at 0.9084
