S&P rates Depository Trust preferreds A+

Standard & Poor's said it assigned its A+ issue rating on Depository Trust & Clearing Corp.'s $400 million preferred stock.

The AA/A-1+ issuer credit ratings remain unchanged and the outlook remains stable.

The agency expects that Depository Trust will use a majority of the proceeds to pay back existing debt on credit lines ($230 million) and on its notes ($60 million).

"The substitution of preferred stock for debt improves the already strong financial risk profile, in our view," S&P credit analyst Thierry Grunspan said in a news release. "Overall, we now project adjusted debt to adjusted EBITDA at 1.6x over the next two years and funds from operations to adjusted debt around 48%, supporting the minimal financial risk profile."

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