{"id":63466,"date":"2022-06-24T19:47:11","date_gmt":"2022-06-24T16:47:11","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=63466"},"modified":"2025-09-06T09:07:51","modified_gmt":"2025-09-06T06:07:51","slug":"moodys-downgrades-coinbase-bond-rating","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/moodys-downgrades-coinbase-bond-rating\/","title":{"rendered":"Moody\u2019s downgrades Coinbase bond rating"},"content":{"rendered":"<p>Moody\u2019s <a href=\"https:\/\/www.moodys.com\/research\/Moodys-downgrades-Coinbase-senior-debt-Ba2-and-places-ratings-under--PR_467258?WT.mc_id=AM%7eUmV1dGVyc05ld3NfQU1QU19TQl9OUl9DVl9SYXRpbmdfTmV3c19BbGw%3d%7e20220623_PR_467258\">downgraded<\/a> Coinbase\u2019s bitcoin-exchange rating from Ba2 to Ba3, with a further downgrade anticipated. Analysts attributed the move to the negative crypto market environment.<\/p>\n<p>Simultaneously with the issuer default rating decision, the agency lowered Coinbase\u2019s guaranteed senior unsecured bonds rating from Ba1 to Ba2.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThe downgrade reflects material declines in revenues and cash flows due to sharp declines in digital asset prices [\u2026] and softer client activity,\u201d<\/em> the press release said.<\/p>\n<\/blockquote>\n<p>The company\u2019s revenue model is tied to trading volumes, per-user transactional activity, and overall crypto-asset prices, analysts noted.<\/p>\n<p>The agency would consider upgrading Coinbase\u2019s rating if the company turns a profit in a bear market and can diversify its revenues away from trading and cryptocurrency prices. In the first quarter, this direction accounted for 87% of Coinbase\u2019s net revenue.<\/p>\n<p>The company has issued two bond tranches maturing in 2028 and 2031, totaling $2 billion.<\/p>\n<p>For January\u2013March 2022, Coinbase posted a net loss of $429.7 million, a figure that nearly doubled analysts\u2019 expectations.<\/p>\n<p>Against a weak start to the year and a slowdown in the crypto market, the cryptocurrency exchange began to optimize costs. <a href=\"https:\/\/forklog.io\/smi-uznali-ob-optimizatsii-rashodov-v-coinbase-posle-slabogo-nachala-goda\/\">began optimizing costs<\/a>.<\/p>\n<p>Earlier, CEO Brian Armstrong <a href=\"https:\/\/forklog.news\/coinbase-sokratit-okolo-18-sotrudnikov\/\">announced a reduction<\/a> of about 18% of staff amid the crypto-winter.<\/p>\n<p>In June 2022, the competing Binance.US scrapped commissions on a number of trading pairs.<\/p>\n<p>Read ForkLog&#8217;s bitcoin news on our <a href=\"\/\/telegram.me\/forklog\u201d\" target=\"\u201c_blank\u201d\" rel=\"\u201cnofollow\u201d noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Moody\u2019s downgraded Coinbase\u2019s bitcoin-exchange rating from Ba2 to Ba3, with a further downgrade anticipated. Analysts attributed the move to the negative crypto market environment.<\/p>\n","protected":false},"author":1,"featured_media":63467,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[138,1825,1211],"class_list":["post-63466","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-coinbase","tag-moodys","tag-stock-market"],"aioseo_notices":[],"amp_enabled":true,"views":"12","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/63466","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=63466"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/63466\/revisions"}],"predecessor-version":[{"id":63468,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/63466\/revisions\/63468"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/63467"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=63466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=63466"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=63466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}