National Securities Clearing Corp.'s $1 Billion Senior Notes Rated 'AA+'

TORONTO (S&P Global Ratings) June 17, 2024--S&P Global Ratings today assigned its 'AA+' issue-level rating to National Securities Clearing Corp.'s (NSCC; AA+/Stable/A-1+) $1 billion senior notes maturing in 2026 and 2029. The rating is in line with our 'AA+' long-term issuer credit rating on NSCC. The proceeds will be used to refinance the $400 million senior notes maturing in November 2024. These notes constitute liquid resources that will be held in bank deposits, predominantly at the Federal Reserve Bank of New York, to facilitate settlement if a member defaults. Given that the company cannot use these debt proceeds for general corporate purposes, we view the transaction as leverage neutral. In addition, we assume that if NSCC were to use any

...June 17, 2024 TORONTO (S&P Global Ratings) June 17, 2024--S&P Global Ratings today assigned its '##+' issue-level rating to National Securities Clearing Corp.'s (NSCC; ##+/Stable/A-1+) $1 billion senior notes maturing in 2026 and 2029. The rating is in line with our '##+' long-term issuer credit rating on NSCC. The proceeds will be used to refinance the $400 million senior notes maturing in November 2024. These notes constitute liquid resources that will be held in bank deposits, predominantly at the Federal Reserve Bank of New York, to facilitate settlement if a member defaults. Given that the company cannot use these debt proceeds for general corporate purposes, we view the transaction as leverage neutral. In addition, we assume that if NSCC were to use any of the proceeds in the event of a member default, it would replenish the funds in a matter of days as NSCC liquidates and settles the positions of the defaulted member....

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