Credit Suisse shares slide 10% as the shine of its rescue package wears off
Fabrice Coffrini/AFP/Getty Images
- Credit Suisse stock slid almost 10% Friday, pulling back after it jumped as much as 20% the previous day.
- The declines came even after the SNB agreed to loan $54 billion to the Swiss banking giant.
- DBRS Morningstar cut Credit Suisse's credit score Thursday, amid concerns it may default on its debt.
Credit Suisse shares resumed declines Friday, losing hold of the previous day's rally in a sign investors aren't convinced the embattled Swiss banking giant isn't out of the woods yet.
The lender's Zurich-listed shares were down 9.4% at 1.83 Swiss francs ($1.97) as of 7:37 a.m. ET. US-listed shares in the financial giant were 6.5% lower at $2.02, after opening premarket trading at $2.25.
Credit Suisse is facing a pile of financial troubles, and investors are concerned it may default on its debt. DBRS Morningstar cut Credit Suisse's credit score to BBB on Thursday.
The Swiss National Bank offered the lender the lifeline of a $54 billion loan on Thursday. Shares jumped almost 20% in the wake of the news, rallying from a record low Wednesday, which came after the bank's biggest backer said there would be no more support coming.
The Swiss government is drawing up plans for a forced takeover of Credit Suisse by its bigger rival UBS, but both banks oppose the plan, Bloomberg reported, citing people with knowledge of the matter.
The past week has been turbulent time for the global banking sector, after Silicon Valley Bank, Signature Bank, and Silvergate Capital all folded in recent days.
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