Clearstream Banking S.A. (CBL) And Clearstream Banking AG (CBF)

The stable outlooks on CBL and CBF reflect our view that Clearstream's intrinsic creditworthiness will be robust in the next two years. The outlook also reflects our expectation that Clearstream will maintain strong capitalization, a very low risk profile, and strong core earnings. We expect to continue assessing Clearstream as an insulated subgroup of DB1. We do not expect Clearstream to issue debt for minimum requirement for own funds and eligible liabilities (MREL) purposes to the extent that it would change our view of its cash flow or leverage. We could downgrade CBL and CBF if the above expectations are not met, notably due to a far sharper rise in leverage, or a materially weaker franchise and profitability. We could

...Clearstream is central to the wider Deutsche Boerse AG (DB1) group, but the '##' group credit profile (GCP) reflects Clearstream's own credit strength. Clearstream Banking S.A. (CBL) and Clearstream Banking AG (CBF) play a central role in the subgroup headed by Clearstream Holding AG and in the wider group headed by DB1, which owns Clearstream. S&P Global Ratings views the Clearstream subgroup as somewhat insulated from DB1, with the '##' GCP on the former reflecting its own strength. It is underpinned by Clearstream's financial risk profile and crucial role in international financial markets, not least as the operator of one of the two leading international central securities depositories (ICSD). We see these structural features as supporting a one-notch gap between the '##-' GCP for DB1 and that for Clearstream. We regard CBL and CBF as core to Clearstream and equalize our ratings on these subsidiaries with the '##' GCP on the subgroup. We expect Clearstream will report improved profitability...

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