Research Update: Euroclear Bank S.A./N.V. And Clearstream Banking Entities Assigned RCRs On Increasing Resolvability

Clearstream Banking S.A. (CBL; AA/Stable/A-1+) and Clearstream Banking AG (CBF; AA/Stable/A-1+), as well as Euroclear Bank S.A./N.V. (AA/Stable/A-1+) are financial institutions regulated as central securities depositories (CSDs) but also have banking licenses. The authorities consider the Clearstream subgroup, headed by Clearstream Holding AG, and the Euroclear subgroup, headed by Euroclear S.A./N.V., to be systemically relevant. Following this, both groups have made decisive progress in implementing credible resolution plans, in our view. Therefore, we assigned our 'AA/A-1+' resolution counterparty ratings (RCRs) to CBL, CBF, and Euroclear Bank. We view the likely resolvability of the Clearstream subgroup as confirmation and reinforcement of its resilience and insulation from the ultimate parent Deutsche Boerse AG (DB1). Therefore, we now consider that the Clearstream group

...- Clearstream Banking S.A. (CBL; ##/Stable/A-1+) and Clearstream Banking AG (CBF; ##/Stable/A-1+), as well as Euroclear Bank S.A./N.V. (##/Stable/A-1+) are financial institutions regulated as central securities depositories (CSDs) but also have banking licenses. - The authorities consider the Clearstream subgroup, headed by Clearstream Holding AG, and the Euroclear subgroup, headed by Euroclear S.A./N.V., to be systemically relevant. Following this, both groups have made decisive progress in implementing credible resolution plans, in our view. - Therefore, we assigned our '##/A-1+' resolution counterparty ratings (RCRs) to CBL, CBF, and Euroclear Bank. - We view the likely resolvability of the Clearstream subgroup as confirmation and reinforcement of its resilience and insulation from the ultimate parent Deutsche Boerse AG (DB1). Therefore, we now consider that the Clearstream group credit profile (GCP) could stand up to two notches above that for DB1....

Research Update