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 originally placed in March 2012.

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

The agency said it considers the revised terms of a deal to acquire LCH.Clearnet Group Ltd. clarified a number of key details related to the financing of the proposed transaction.

Notwithstanding the associated rise in leverage, S&P said it sees the transaction as being broadly neutral for the creditworthiness of London Stock Exchange Group. This is because the deal will improve the group's diversification, the agency said.

London Stock Exchange Group's financial profile is expected to show meaningful recovery by the end of its financial year in March 2014, S&P said.

The transaction is due to close in the second quarter this year following required approvals, the agency added.

© 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.