OCC statement regarding the S&P rating change on OCC counterparty risk

CHICAGO (August 8, 2011) Standard & Poor’s has continued its lockstep approach of linking the ratings of a number of financial institutions and instruments to its rating of U.S. sovereign debt. Following the downgrade of U.S. sovereign debt to AA+ on Friday, S&P has now downgraded OCC, The Depository Trust Co. (DTC), National Securities Clearing Corp. (NSCC), and Fixed Income Clearing Corp. (FICC) to AA+ today.

“This rating change will have no negative impact on OCC’s operations or our ability to meet our obligations to OCC’s clearing members,” said Wayne P. Luthringshausen, OCC Chairman and CEO. As S&P noted in its release, “the downgrades of these four financial institutions are not the result of any company-specific event. We have not changed our view of the fundamental soundness of their depository or clearing operations. Rather, the downgrades incorporate potential incremental shifts in the macroeconomic environment and the long-term stability of the U.S. capital markets as a consequence of the decline in the creditworthiness of the federal government.”

OCC continues to provide solid risk management to ensure the security and stability of the markets we serve.

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