Amid the crashing crypto market, rating’s agency Moody has downgraded Coinbase’s corporate debt and also placed its debt ratings for the crypto exchange under review for further downgrade.
The exchange platform’s Corporate Family Rating (CFR) has been downgraded from Ba2 to Ba3. Coinbase’s guaranteed senior unsecured notes has been downgraded from Ba1 to Ba2.
Coinbase has $2 billion in senior guaranteed notes due in 2028 and 2031.
Moody said that the “rating action reflects Coinbase’s substantially weaker revenue and cash flow generation due to the steep declines in crypto asset prices that have occurred in recent months and reduced customer trading activity.”
The agency also believes that the exchange platform’s profitability will remain challenged despite laying off about 18% of its workforce.
Moody said that it has placed Coinbase’s ratings under review, and will downgrade them further if ‘its profitability will continue to be significantly challenged in the current or lower crypto asset price and trading volume environments.’
