Moody's Affirms LSE's A3 Senior Rating, Upgrades Outlook To Positive

(Alliance News) - Moody's Investors Service on Wednesday affirmed London Stock Exchange Group ...

Alliance News 13 June, 2019 | 10:22AM
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(Alliance News) - Moody's Investors Service on Wednesday affirmed London Stock Exchange Group PLC's A3 Senior rating and upgraded the stock exchange operator's outlook to Positive.

LSE's local and foreign currency long-term issuer and senior unsecured debt A3 ratings were affirmed and the company's local and foreign currency commercial paper ratings were affirmed at Prime-2.

The credit ratings agency said it affirmed LSE's ratings because of the "stability of the company's strategic positioning" and the "strength" of its financial profile.

"These attributes have remained in place following the transition in LSE's leadership with a new chief executive and a new chair in place" added Moody's.

Moody's continued: "LSE's credit profile benefits from its global and diverse franchise that mitigates the risk of weaker results in some parts of its business, including those risks that might develop from Brexit-related uncertainties."

Moody's said LSE's recent increase in its controlling stake in LCH Group Holdings Ltd to 82.6% and acquiring a 4.9% stake in Euroclear Holdings were "credit positive actions".

The investor services said it expects LSE to continue to make bolt-on investments and acquisitions. This, Moody's said, will allow LSE to "expand the reach of its existing activities, and its cash flow generation capacity, which has been amplified by successful acquisitions, will allow it to de-lever relatively quickly from any increased debt that may result from such transactions."

"Like other exchange and clearing house operators, in order to continue to be successful LSE must maintain technological competitiveness and manage effectively the significant operating risks arising from exchange trading and clearing activities," added Moody's.

The credit ratings firm also affirmed the LSE group's main operating subsidiary with the same ratings as its parent company.

Shares in LSE were up 0.5% Thursday at 5,434.00 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
London Stock Exchange Group PLC 6,852.00 GBX 1.93
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