Moody’s revises outlook on Coinbase to negative after SEC lawsuit

Moody’s on Thursday changed its outlook on crypto exchange Coinbase Global Inc.
COIN,
+3.08%
to “negative” from “stable” after the SEC this week charged the company with running an unregistered securities exchange. “The change in outlook to negative from stable reflects the uncertain magnitude of impact the SEC’s charges will have on Coinbase’s business model and cash flows,” Moody’s said in a statement. The credit-rating firm said it affirmed other ratings on Coinbase’s debt, citing strong liquidity and cash-flow improvements as the exchange tightens up its expenses. Shares of Coinbase were down 0.5% after hours.