Ratings Agency Moody’s Has Downgraded Coinbase’s Corporate Debt

Ratings agency Moody’s has downgraded Coinbase’s corporate debt. Coinbase's Corporate Family Rating debt was downgraded by Moody's to Ba3 from Ba2, while its guaranteed senior unsecured notes was dropped to Ba2 from Ba1. Moody’s said the downgrade 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". It expects Coinbase’s profitability to remain challenged despite announcing the layoffs of around 1,100 employees on June 14.