0939 GMT - Switzerland's new framework for "too big to fail" banks is broadly supportive of their creditworthiness, S&P Global Ratings says in a note. The proposals offer more supervisory effectiveness and standards to ensure liquidity resilience, analysts say. "Stronger capitalization is usually supportive of credit ratings, but only if banks can concurrently operate a sustainable business model," analysts Anna Lozmann and Giles Edwards write. However, the rules create a headache for UBS, which will potentially have to comply with a steep rise in its capital requirements, they add. Investors in Swiss additional Tier 1 securities would also have more clarity around when to expect coupon deferral and non-call decisions. That is because the proposals seek to make it harder for banks to call these, they note. (elena.vardon@wsj.com)
(END) Dow Jones Newswires
June 10, 2025 05:39 ET (09:39 GMT)
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