Rating agency Moody’s has recently downgraded the rating of Coinbase from “Ba2” to “Ba3” with a further downward revision.
The company analysts have explained the move by negative market conditions for cryptocurrencies.
Coinciding with the issuer default rating decision, the agency has downgraded Coinbase’s Guaranteed Senior Unsecured Notes from Ba1 to Ba2.
According to the press release:
“The downgrade reflects a significant decline in revenue and cash flow due to a sharp drop in digital asset prices and weakening customer activity.”
The company’s revenue model is “tied to trading volumes, transaction activity per user and overall prices for crypto assets.”
