S&P Global Downgrades Coinbase Credit Rating to BB

Credit rating agency S&P Global ratcheted down Coinbase's long-term issuer credit rating and senior unsecured debt ratings to BB from BB+, citing "weak earnings and competitive pressure." S&P said that competitive risk has intensified in the crypto exchange sector, with the company's market share decreasing this year, and cyclical variations for Coinbase have exceeded our previous expectations due to market share erosion and a higher risk of margin compression, leading S&P to revise their assessment of financial risk. The credit agency said its assessment also reflected "uncertainties about the length of the current crypto bear market and "the potential for further market share deterioration." Coinbase shares closed Thursday at $84 per share, down more than 10%.