S&P Global Ratings on May 21 upgraded London Stock Exchange Group PLC's long- and short-term issuer credit ratings to A/A-1 from A-/A-2, and revised the outlook on the long-term ratings to stable from positive.
At the same time, the agency raised the stock exchange operator's long-term senior unsecured debt issuer ratings to A from A-.
The agency also upgraded the long- and short-term issuer credit ratings on units LCH Ltd. and Banque Centrale de Compensation SA, which trades as LCH SA, to AA-/A-1+ from A+/A-1, and changed the outlook on the long-term ratings to stable from positive.
The upgrade reflects S&P's view that after many years of transformative expansion and diversification, the group is well positioned among global financial market infrastructure peers and has achieved profitable diversification across a range of structurally robust expanding market segments. The agency said it is now more confident that the group's strategic position is unlikely to be materially damaged by Brexit, regardless of whether the U.K. exits the EU without a deal.
S&P also does not expect Brexit to affect the market-leading position of LCH Ltd. and LCH SA in the clearing of over-the-counter derivatives over the next two years.
The outlook revision to stable reflects the agency's expectation that the group will continue to increase profits and expanding over the next two years, without material deterioration in strategic position or leverage.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.