Fitch assigns Schwab’s notes A

Fitch Ratings assigned an A rating to Charles Schwab Corp.’s recent issuance of $600 million senior unsecured notes due 2025 and $500 million senior unsecured notes due 2030.

The outlook is stable.

The expected ratings on the unsecured notes are equal with the ratings assigned to Schwab's existing unsecured debt, as the new notes will rank equally in the capital structure.

Proceeds from Schwab's senior unsecured note issuances are expected to be used for general corporate purposes, which may include providing additional capital to its bank subsidiaries to support balance sheet growth.

Schwab's sweep deposit balances are expected to grow as a result of its pending acquisition of USAA's Investment Management Co., which is expected to close in May, and the increase in sweep deposits resulting from the de-risking of client portfolios following the sharp increase in market volatility stemming from the Covid-19 pandemic.

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