Research Update: The Depository Trust Co. And National Securities Clearing Corp. 'AA+/A-1+' Ratings Affirmed On Updated Criteria

On July 1, 2019, S&P Global Ratings published its updated group rating methodology criteria. The new criteria describes the conditions under which a subsidiary is sufficiently insulated from the rest of the group for it to be rated above the group credit profile (GCP). We believe DTC and NSCC meet the conditions described in the new criteria for the issuer credit rating to be rated one notch higher than the GCP of parent company The Depository Trust&Clearing Corp. (DTCC). As a consequence, we are affirming the 'AA+' long-term and 'A-1+' short-term ratings on NSCC and DTC. The stable outlook on DTC and NSCC reflects S&P Global Ratings' expectation that the companies' financial safeguards will continue to provide substantial

...- On July 1, 2019, S&P Global Ratings published its updated group rating methodology criteria. The new criteria describes the conditions under which a subsidiary is sufficiently insulated from the rest of the group for it to be rated above the group credit profile (GCP). - We believe DTC and NSCC meet the conditions described in the new criteria for the issuer credit rating to be rated one notch higher than the GCP of parent company The Depository Trust & Clearing Corp. (DTCC). - As a consequence, we are affirming the '##+' long-term and 'A-1+' short-term ratings on NSCC and DTC. - The stable outlook on DTC and NSCC reflects S&P Global Ratings' expectation that the companies' financial safeguards will continue to provide substantial protection against member defaults, and that, despite sharing some important functions with the rest of the group, they will keep their ability to operate should DTCC default....

Research Update