Ratings agency S&P Global downgraded Coinbase cryptocurrency exchange rating to “BB-” from “BB,” noting a significant decline in trading activity on the site following the collapse of FTX. The rating outlook is “negative,” the agency said in a statement.

“We believe the weakened trading activity following the collapse of the FTX cryptocurrency exchange will adversely affect the profitability of Coinbase operations,” S&P experts said.

The “BB-” rating considers Coinbase’s forecasts of “very low profitability and very high regulatory risks,” according to the press release. Is Coinbase a good crypto exchange? After these S&P predictions, many investors and regular users became concerned about the safety of their assets. Recall that the crypto exchange also acts as one of the key issuers of stablecoin USDC. Against the backdrop of this news, the USDC exchange rate will deviate slightly. But for now, holders of this stablecoin should not panic.

Last November, the cryptocurrency exchange FTX entered bankruptcy under Article 11 of the U.S. Bankruptcy Code. Its founder, Sam Bankman-Friede, was charged by U.S. authorities with defrauding investors, allowing the FTX case “the largest financial fraud in American history.”

Coinbase earlier this week announced its intention to cut 950 jobs to trim costs amid a crisis in the industry.

The company reiterated its November forecast that it would record negative adjusted EBITDA of no more than $500 million. Coinbase shares added 2.3% in premarket trading Thursday. Over the past 12 months, their value has fallen by 81%.

Earlier, we reported that Goldman Sachs improved its 2023 GDP forecast for the eurozone.