Credit ratings agency S&P Global has said that the outlook for crypto exchange giant Coinbase was “negative.”
Coinbase’s long-term issuer credit rating and senior unsecured debt ratings were sent down to BB from BB+.
The ratings agency cited “weak earnings and competitive pressure” as the reasons for the negative ratings.
The credit agency also cited “uncertainties about the length of the current crypto bear market and “the potential for further market share deterioration.”
Two days earlier, Coinbase reported a nearly 30% decline in trading volume from $309 million in the first three months of 2022 to $217 million in its second quarter, and missed consensus revenue expectations.
The exchange posted a net loss of $1.1 billion during the quarter, versus a $430 million loss in the first quarter.
Coinbase is under investigation by U.S. securities regulators over its token listing processes as well as its staking programs and yield-generating products.