Fitch rates Euroclear preferred notes AA+

Fitch Ratings said it assigned Euroclear Bank (AA+/stable/F1+/aa+) an expected rating of AA+(EXP) to its upcoming €1 billion issuance of senior preferred notes to be issued under its euro medium-term note program.

The issuer ratings were unaffected by the action.

The agency said that in its view, the likelihood of default on the senior notes under the program reflects the likelihood of default of the bank.

Fitch said the issuer default ratings reflect the bank’s leading franchise in the international post-trade securities services industry, in particular in settlement and custody services, as well as its very strong financial metrics.

The agency said the ratings also consider the bank’s resilient revenue bases despite secular challenges in the settlement industry, a very low appetite for and exposure to credit risk, adequate investments in its control framework to ensure sound operational risk controls, prudent liquidity management and strong capitalization.

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