Swiss banking group UBS has disclosed so much bad news that its shares can now recover, US investment bank Morgan Stanley has said, upgrading its stance on UBS to “equal weight” from “underweight”. The investment bank, which removed UBS from its model portfolio as a least preferred stock, said through the management change at the company, the group is starting a new chapter "with gritty realism about the challenges ahead,” according to media reports. "If there are no further major write-downs, and management executes well, then despite the risks we no longer see a significant underweight versus the wider banks sector," Morgan Stanley said in a note. With additional write-downs of $19 billion on its US real estate and related assets causing a net loss of $12 billion in the first quarter, UBS leads the global list of those hit hardest by the credit crisis. Meanwhile, UBS's plan to raise $15 billion in a rights offer may not be enough to replenish capital, said the Ethos Foundation, an investor in Switzerland's biggest bank. "Nobody knows whether there will be further write-downs which would lead to further requests for capital," Vinzenz Mathys, a spokesman for the Geneva-based foundation, said in a recent interview. Ethos, which owns about 1.5 million UBS shares, plans to back the bank's nomination of Peter Kurer to replace Chairman Marcel Ospel as an "interim solution".