There were numerous signs of the crypto bank’s problems, but none of the analysts following the company picked up on them. Angelo Calvello, of Rosetta Analytics, says that was partly down to their traditional investment mindset.
The ratings agency cited Coinbase’s weakened revenue and cash flow generation potential due to the ongoing crypto winter as reasons for the move. S&P downgraded the company earlier this month.
The exchange has staying power due to its healthy balance sheet, a proactive approach to regulatory compliance, sensible risk management and legitimacy as a public company, the report said.