Summary: According to coindesk, Credit Ratings Agency S&P Global dropped Coinbase's long-term issuer credit rating and senior unsecured debt ratings to BB from BB+, citing "weak earnings and competitive pressure." "Competitive risk has intensified in the crypto exchange sector, with the company's market share decreasing this year," S&P Global wrote. "We believe that as a result ...

According to coindesk, Credit Ratings Agency S&P Global dropped Coinbase's long-term issuer credit rating and senior unsecured debt ratings to BB from BB+, citing "weak earnings and competitive pressure."

"Competitive risk has intensified in the crypto exchange sector, with the company's market share decreasing this year," S&P Global wrote. "We believe that as a result of market share erosion and a higher risk of margin compression, cyclical variations for Coinbase have exceeded our previous expectations, leading us to revise our 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%. 

By Amy Liu