The Swiss banking giant Credit Suisse today announced a writedown due to a revaluation of some of its structured credit trading positions.

The firm reported that it has undertaken an internal review that has resulted in the repricing of certain asset-backed positions in its structured credit trading business within investment banking.

“The current total fair value reductions of these positions, which reflect significant adverse first quarter 2008 market developments, are estimated at approximately US$2.85 billion (having an estimated net income impact of approximately US$1 billion),” it said.

“In the first quarter to date, we estimate we remain profitable after giving effect to these reductions,” the firm added. “The final determination of these reductions will depend on further results of our review and continuing market developments. We will also assess whether any portion of these reductions could affect 2007 results. Finally, our internal review, which has identified mismarkings and pricing errors by a small number of traders in certain positions in our structured credit trading business, is continuing.”