Zurich-based investment house Vontobel has received a negative outlook downgrade from Moody’s, one of the major American rating agencies. The agency attributes this downgrade to a lack of traction and performance in Vontobel’s asset management business. Over the past few months, the company’s fund business, which serves as its primary revenue source, has been experiencing outflows. Moody’s predicts that these outflows will have a negative impact on Vontobel’s profitability and competitive position in the next 12 to 18 months.
In addition to the performance concerns, Moody’s has also lowered Vontobel’s ESG Credit Impact Score due to changes in the company’s top leadership. This includes the departure of the CEO and COO, which will pose a challenge for the incoming co-CEOs set to take over in early 2024. Moody’s warning not only indicates potential difficulties in securing financing for Vontobel but also raises the possibility of an actual credit rating downgrade. Such a downgrade would result in increased borrowing costs for the investment house.
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| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇨🇠|
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Christel Rendu de Lint, Georg Schubiger, Zeno Staub |
| Companies | finews.ch, Moody’s, Basler Kantonalbank, Vontobel |
| Currencies | None |
| Securities | None |
