Fitch Ratings says in a special report that the Swiss banking system is in a relatively good position to operate in a more challenging market, despite the sizeable write-downs affecting UBS AG (UBS; rated 'AA-' (AA minus)/Outlook Negative) and, to a lesser extent, Credit Suisse Group (CSG; rated 'AA-' (AA minus)/Outlook Stable). The sector continues to benefit from generally sound asset quality, solid capitalisation, healthy revenue generation and a comprehensive regulatory framework.