S&P Global Ratings on May 31 upgraded London Stock Exchange Group Plc's long-term counterparty credit rating and its senior unsecured rating to A- from BBB+ and affirmed its short-term counterparty credit rating at A-2.
The ratings actions reflect the agency's view that the group's resilience to a hypothetical Italian sovereign default has improved by growing faster outside Italy than within the country.
S&P also revised to stable from positive the outlook on the group, reflecting the agency's expectation that the group will maintain a strong business profile, robust cash flow generation and a controlled appetite for leverage over the two-year rating horizon.
Simultaneously, the agency downgraded LSE unit LCH Group Holdings Ltd.'s long-term counterparty credit rating to A from A+ and affirmed its short-term rating at A-1. The downgrade is based on an increased financial and operation integration of LCH Group with London Stock Exchange Group, which lowers the extent of its insulation, according to S&P.
LCH's outlook was revised to stable from negative, reflecting the agency's expectation that the group will maintain its cautious risk appetite and improve its franchise.
S&P subsequently withdrew LCH Group's ratings at the company's request.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.