REFILE-UBS CEO Ermotti: Credit Suisse no longer seeing outflows, situation has stabilised

(Refiles to fix 2nd paragraph formatting)

LUZERN, Switzerland, May 12 (Reuters) - UBS Chief Executive Sergio Ermotti said on Friday that the situation at Credit Suisse has stabilized and he did not think outflows at the embattled bank were continuing.

Addressing the Swiss Media Forum in Lucerne, Ermotti also said he hoped there would be an investigation into Credit Suisse's Group downfall, which prompted his bank's takeover of its Swiss rival as part of a rescue orchestrated by the Swiss authorities.

He said UBS was on track to close the transaction within three months from its March 19 announcement.

(Reporting by Noele Illien, Editing by Tomasz Janowski)