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New analysis on UBS AGPublished : 7 years ago, on
Scope Ratings has updated its rating report on UBS AG, rated AA- with Stable Outlook.
UBS’s ratings are driven by the resilience of the group’s business model which is centered on its market-leading global wealth management franchise and its position as a leading universal bank in its home market of Switzerland. Asset management and investment banking activities further support and complement the overall business franchise. Under various operating conditions, the group’s businesses have demonstrated their ability to generate solid earnings.
While the wealth management industry faces challenges such as margin compression, changing customer needs and increasing regulation, the group’s strong franchise and long-term focus means that the business continues to grow profitably.
Management remains committed to maintaining balance sheet strength and the group is well positioned against relatively demanding Swiss too-big-to-fail requirements. Potential litigation and regulatory costs remain a risk – not only in terms of financial impact but also in terms of reputational damage.
Download the full rating report here.
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