S&P Says OCC Credit Rating Unaffected by SEC Approval of New Financial Safeguards Framework

August 22, 2018
Chicago -

OCC, the world's largest equity derivatives clearing organization, today commented on the August 21 bulletin by Standard & Poor's saying that OCC's AA+/Stable credit rating remains unaffected by the approval of the company's new financial safeguards framework by the U.S. Securities and Exchange Commission.

In a bulletin posted to its website, S&P said OCC's decision to "size its clearing fund to formally provide enough resources to cover the simultaneous default of its two largest clearing members versus a default of its single largest clearing member in the current framework... will put OCC at par with most U.S. and European peers and will be consistent with our expectation, already factored in the ratings." S&P also said, "... we regard it important that a CCP has sufficient resources to withstand the liquidity strain that could arise if two leading clearing members default."

Craig Donohue, OCC Executive Chairman and Chief Executive Officer, said, "S&P's announcement is a strong recognition of OCC's efforts to strengthen its financial safeguards framework and to promote stability and market integrity through effective and efficient clearance, settlement and risk management services."

John Davidson, OCC President and Chief Operating Officer, added, "This announcement reflects favorably on the outstanding work being performed every day by our team on behalf of our participating exchanges, clearing firms and market participants. We will continue to focus our energies on strengthening the resiliency, risk management and capitalization of OCC in order to ensure confidence in the financial markets and the broader economy."

Of the 9,328 global entities and sovereigns rated by S&P, only one percent have an AA+/Stable rating like OCC.

Your acceptance of all cookies will permit robust site functionality. If you don't allow cookies, some features and functionality of OCC's site may not operate as expected. If you do not choose either cookie setting for our site, or if you close this window, this message will continue to display on each page you visit. Cookie settings can be controlled in your Internet browser to automatically reject some forms of cookies. For more details on cookies this site uses, see our OCC Site Cookies page. In addition to using cookies, we retain other information, including your Internet Protocol (IP) address, for the purposes listed in the Privacy Policy. Do not accept analytic cookies Accept analytic cookies