S&P puts Options Clearing on watch

S&P said it placed the AA+ long-term issuer credit rating on the Options Clearing Corp.'s on CreditWatch with negative implications.

The agency said it expects to resolve the CreditWatch placement in the coming three months, likely after the company's new proposed capital plan is known.

The CreditWatch placement follows news of the disapproval of Options Clearing's capital plan by regulators, S&P said.

The decision remains subject to further legal process, the agency said.

But if it stands, that could compel Options to repay a $150 million capital contribution from its exchange stockholders, leaving it at risk of breaching SEC capital requirements, S&P said.

The agency said it assumes regulators will allow the company some time to develop an alternative plan to restore adequate capitalization, but this could take significant time.

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