OCC Comments on S&P Reaffirmation of AA+/Stable Rating
CHICAGO (September 21, 2016) – OCC, the world's largest equity derivatives clearing organization, today commented on the reaffirmation of its AA+/Stable rating by Standard & Poor's (S&P). In May, the rating agency had placed a credit watch with negative implications on OCC's credit rating.
"We are pleased that S&P has reaffirmed OCC's AA+/Stable rating," said Craig Donohue, OCC Executive Chairman and Chief Executive Officer. "Their decision is a positive recognition of our efforts, which had been underway prior to their May announcement, to strengthen OCC's financial safeguards framework in order to better conform to international standards.
"The S&P decision also reflects favorably on the outstanding work by OCC's management and employees to strengthen the resiliency, risk management, and capitalization of our company. We will continue to deliver on these initiatives in order to serve market participants and ensure confidence in the financial markets and the broader economy."
In their press release, S&P said they believe that "OCC has a credible plan to build the capital and liquidity resources to absorb the current default of its two largest members." and they expect OCC to implement the new financial safeguards in the course of 2017.
OCC received a AA+/Stable rating by S&P in June 2013.
OCC is the world's largest equity derivatives clearing organization and the foundation for secure markets. Founded in 1973, OCC operates under the jurisdiction of both the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) as a Derivatives Clearing Organization. Named 2016 Clearinghouse of the Year by Global Investor/ISF Magazine, OCC now provides central counterparty (CCP) clearing and settlement services to 19 exchanges and trading platforms for options, financial futures, security futures, and securities lending transactions. More information about OCC is available at www.theocc.com.