S&P Global Ratings assigned J.P. Morgan Securities Australia Ltd. long- and short-term issuer credit ratings of A+ and A-1, respectively, with a stable outlook.
The rating agency said May 15 that the ratings reflect the company's position as a core subsidiary of JPMorgan Chase & Co.
S&P noted that JPMorgan Chase plans to merge nearly all of its investment banking, fixed income, clearing, and equities activities in Australia into J.P. Morgan Securities Australia.
As part of the restructuring, J.P. Morgan Australia Ltd., J.P. Morgan Investments Australia Pty Ltd. and J.P. Morgan Markets Australia Pty Ltd will merge into J.P. Morgan Securities Australia.
Following the restructuring, J.P. Morgan Securities Australia will operate four key components of JPMorgan Chase's global strategy in a location that is strategic to the group, the rating agency said.
The stable outlook on J.P. Morgan Securities Australia is in line with S&P's outlook on JPMorgan Chase and reflects the rating agency's expectations that the group will complete the merger of the three Australian units into J.P. Morgan Securities Australia.
The rating agency said that if the merger of the four entities does not proceed as planned, it could downgrade J.P. Morgan Securities Australia's ratings.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.