LONDON (S&P Global Ratings) Oct. 4, 2023--Global financial market infrastructure (FMI) companies' strong ratings reflect their robust strategic positioning, high margins and cashflow generation, and track record of strong risk management. In their position at the heart of national and global financial markets, their smooth operation is critical to global financial system stability.
As noted in a report published today, we believe that operational resilience--the capacity to avoid and respond to operational disruption--is essential to protecting FMIs' robust and deeply embedded franchises (see Operational Resilience Is Key To Global FMIs’ Rating Strength on RatingsDirect).
Cyber-attacks pose an increasingly high-profile concern across corporate sectors. FMIs are no exception to this, though we believe that cyber risk should be viewed in the broader context of their operational resilience. FMIs' capacity to monitor, maintain, and resume their services, regardless of the source of disruption, is an essential competency and one that their regulators and customers monitor closely. In fact, among the many potential operational risk events--of which cyber-attacks are just one--service outages are by far the most prevalent risk. While our strong ratings on global FMIs acknowledge their solid foundations and track record of operational resilience, a material weakening in the effectiveness of their risk management--whether from long-term underinvestment or serious and sustained operational risk and cyber events--could undermine FMI ratings.
This report does not constitute a rating action.
The report is available to RatingsDirect subscribers at www.capitaliq.com. If you are not a subscriber, you may purchase a copy of the report by emailing research_request@spglobal.com. Ratings information can also be found on S&P Global Ratings' public website by using the Ratings search box at www.spglobal.com/ratings. Alternatively, call S&P Global Ratings' Global Client Support Line (44) 20-7176-7176.
| Primary Credit Analyst: | William Edwards, London + 44 20 7176 3359; william.edwards@spglobal.com |
| Secondary Contacts: | Giles Edwards, London + 44 20 7176 7014; giles.edwards@spglobal.com |
| Nico N DeLange, Sydney + 61 2 9255 9887; nico.delange@spglobal.com |
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