...April 16, 2020 TORONTO (S&P Global Ratings) April 16, 2020--S&P Global Ratings said today it assigned its '##+' rating to National Securities Clearing Corp.'s (NSCC; ##+/Stable/A-1+) new senior notes. NSCC announced today that it plans to issue $1 billion to $1.5 billion of senior notes. Proceeds from the issuance will be held in bank deposits, predominantly at the Federal Reserve Bank of New York. NSCC can only use the funds to facilitate settlement in the event of a member default. The notes offering follows the SEC approval in February 2020 that authorizes NSCC to issue up to $10 billion of term debt and use the proceeds as a default liquidity resource to further strengthen its liquidity risk management. Given that NSCC cannot use these debt proceeds for general corporate purposes, we view the transaction as leverage neutral. Additionally, we assume that if NSCC were to use any of the proceeds in the event of a member default, the company would replenish the funds in a matter of days...
