S&P: London Stock Exchange remains on watch

Standard & Poor's said it maintained the A- long-term counterparty credit rating on London Stock Exchange Group plc on CreditWatch with negative implications, where it was placed in March.

The agency also affirmed its A-2 short-term counterparty credit rating.

The existing CreditWatch placement of the long-term rating reflects that the company's financial risk profile could deteriorate if the group completes the acquisition of a majority stake in LCH.Clearnet Group Ltd.

This is because the deal would increase London Stock Exchange's debt and weaken its tangible equity, although S&P said it acknowledges that an improvement in the group's business risk profile could mitigate this.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.