DTCC’s three SIFMU subsidiaries, DTC, NSCC and FICC, recognized with Aaa Long-Term and Prime-1 Short Term Issuer Ratings
New York/Boston/London/Hong Kong/Singapore – 3 September 2014 – Three core subsidiaries of The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, have been recognized for their superior creditworthiness and risk management capabilities in meeting their clearing and settlement obligations. Moody’s Investor Services has assigned its highest issuer ratings to The Depository Trust Company (DTC), National Securities Clearing Corporation (NSCC) and Fixed Income Clearing Corporation (FICC), with each SIFMU[1] having received Aaa long-term and Prime-1 short term issuer ratings.
DTC, FICC and NSCC were recognized for their strong risk management processes and the key role each clearing agency plays in the post-trade operations supporting the U.S. financial markets, in addition to their ability to meet clearing and settlement obligations to counterparties during periods of financial stress, including member defaults.
In its recent announcement, Moody’s cited “DTCC’s subsidiaries’ dominant and entrenched positions in post-trade services as well as their robust default management framework.” Moody’s also cited the handling of the Lehman collapse as a “proxy for their operational and risk management resilience” with processes that protected other members and the SIFMUs themselves from loss during that event.
“We are pleased that Moody’s has recognized DTC, NSCC and FICC as financially sound, stable and trusted clearing agencies,” said Michael Bodson, Chief Executive Officer of DTCC. “DTCC has long been committed to protecting the stability and integrity of global financial markets, and these ratings are an acknowledgement of the robust risk management and financial controls that we have implemented across the organization.”
To view the complete Moody’s announcement, please click here.