(Bloomberg) -- Credit Suisse Group AG’s outlook was revised to negative from stable by S&P Global Ratings after the Swiss bank named a new chief executive officer in an attempt to recover from a period of scandal, turmoil and huge losses.

“We see increasing risks to the stability of the bank’s franchise, uncertainty around the reshuffling of top executives, and a lack of a clear strategy, and we think the group’s risk-adjusted and absolute profitability is likely to remain weak over the medium term,” S&P said Monday in a statement.

Credit Suisse posted a larger-than-expected 1.59 billion-franc ($1.65 billion) loss for the second quarter. It announced last week that asset-management chief Ulrich Koerner, 59, would replace Thomas Gottstein as CEO, charged with leading a turnaround effort.

The ratings company said it affirmed its A/A-1 long-and short-term issuer credit grade on Credit Suisse AG, the principal operating bank of the Credit Suisse group, and the group’s other core subsidiaries. It also affirmed its BBB long-term issuer credit rating on Credit Suisse Group AG.

The bank was shaken by losses tied to the blow-up of Archegos Capital Management and Greensill Capital. Now with inflation fears and the war in Ukraine spurring more turbulence, its losses have totaled almost 4 billion Swiss francs in the past three quarters.

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Author: Dan Reichl