Coinbase downgraded by Moody's, may be cut further

Quick Take

  • Moody’s Investors Service said Thursday that it “downgraded Coinbase Global, Inc.’s (Coinbase) Corporate Family Rating (CFR) to Ba3 from Ba2 and downgraded its guaranteed senior unsecured notes to Ba2 from Ba1.”
  • The move came in the wake of company layoffs and tough first-quarter results for the US crypto exchange.

Ratings agency Moody's said Thursday that it downgraded US crypto exchange Coinbase's senior unsecured notes. 

Specifically, Moody's said it "downgraded Coinbase Global, Inc.'s (Coinbase) Corporate Family Rating (CFR) to Ba3 from Ba2 and downgraded its guaranteed senior unsecured notes to Ba2 from Ba1."

"The ratings were placed under review for further downgrade," the agency added.

The Baa3 rating refers to a "moderate" degree of credit risk and represents the lowest level of institutional-grade creditworthiness.  

In its explanatory note, Moody's highlighted: 

THE SCOOP

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