Moody’s Investors Service on Thursday placed UBS’s Aa3 long-term debt and deposit ratings on review for possible downgrade.

“The primary focus of Moody’s review will center on ongoing weaknesses in the group’s risk management and controls that have become evident again by the events leading to UBS announcing a loss due to unauthorised trading by a trader in its investment bank,” said Moody’s in a statement.

The ratings agency said that UBS will be able to manage a loss of that magnitude due to its sound liquidity and capital position. “However the losses call into question the Group’s ability to successfully complete the rebuilding of its Investment banking operations,” Moody’s noted.

Read more at Marketwatch