S&P reviews Depository Trust & Clearing

S&P said it placed its AA long-term issuer credit rating on Depository Trust & Clearing Corp. along with related issue ratings, and the AA+ long-term issue ratings on core subsidiaries Fixed Income Clearing Corp., National Securities Clearing Corp., and Depository Trust Co. on CreditWatch with negative implications.

The short-term issuer credit ratings on all four entities, as well as the short-term issue rating on commercial paper issued by NSCC, remain unchanged at A-1+ and are not on CreditWatch.

"The CreditWatch action follows our review of the clearing and settlement risk position of the group, in comparison with other U.S. clearing houses and global peers," S&P analyst Thierry Grunspan said in a news release.

"Clearing houses and regulators around the world have recently released more granular information (such as the CPMI-IOSCO qualitative and quantitative disclosures or the European Securities and Markets Authority stress-test results) that facilitates comparisons. We believe FICC's financial safeguards are weaker than its U.S. and European peers', from a liquidity standpoint."

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