- Our ratings analysis of Pershing LLC incorporates our view that the U.S. broker-dealer is a highly strategic subsidiary of Bank of New York Mellon Corp. (BK).
- We believe that BK would provide support to Pershing if needed under almost all foreseeable circumstances.
- We are assigning 'A+/A-1' issuer credit ratings to Pershing, one notch lower than the supported group credit profile of 'aa-' for BK.
- The outlook on Pershing is stable, in line with our outlook on its parent.
NEW YORK (S&P Global Ratings) Nov. 6, 2019--, S&P Global Ratings today assigned 'A+/A-1' long-term and short-term issuer credit ratings to Pershing LLC. The rating outlook is stable.
We also assigned a resolution counterparty rating of 'A+/A-1'.
Our ratings on Pershing LLC are based on our view that the U.S.-based broker-dealer is a highly strategic subsidiary of its parent, the Bank of New York Mellon Corp. (BK) (A/Stable/A-1), and we expect that the BK group would most likely support Pershing if needed. In our view, evidence of Pershing's highly strategic importance to BK includes the business line's revenue contribution to the group, its operational and strategic integration, and BK's demonstrated funding support to Pershing. Therefore, our issuer credit rating on Pershing is one notch lower than the supported group credit profile of 'aa-' for the BK group.
The outlook on Pershing LLC will likely continue to be the same as our outlook on the parent over the next two years. Both are stable. So long as the rating on BK remains unchanged, we would change our rating on Pershing LLC only if we were to alter our view of the subsidiary's strategic importance to its parent, which we do not view as likely within the next couple of years.
- General Criteria: Group Rating Methodology, July 1, 2019
- Criteria | Financial Institutions | General: Risk-Adjusted Capital Framework Methodology, July 20, 2017
- General Criteria: Methodology For Linking Long-Term And Short-Term Ratings, April 7, 2017
- Criteria | Financial Institutions | Banks: Bank Rating Methodology And Assumptions: Additional Loss-Absorbing Capacity, April 27, 2015
- Criteria | Financial Institutions | Banks: Bank Hybrid Capital And Nondeferrable Subordinated Debt Methodology And Assumptions, Jan. 29, 2015
- General Criteria: Ratings Above The Sovereign--Corporate And Government Ratings: Methodology And Assumptions, Nov. 19, 2013
- Criteria | Financial Institutions | Banks: Assessing Bank Branch Creditworthiness, Oct. 14, 2013
- Criteria | Financial Institutions | Banks: Quantitative Metrics For Rating Banks Globally: Methodology And Assumptions, July 17, 2013
- Criteria | Financial Institutions | Banks: Banking Industry Country Risk Assessment Methodology And Assumptions, Nov. 9, 2011
- Criteria | Financial Institutions | Banks: Banks: Rating Methodology And Assumptions, Nov. 9, 2011
- General Criteria: Use Of CreditWatch And Outlooks, Sept. 14, 2009
- Criteria | Financial Institutions | Banks: Commercial Paper I: Banks, March 23, 2004
Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for further information. Complete ratings information is available to subscribers of RatingsDirect at www.capitaliq.com. All ratings affected by this rating action can be found on S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column.
|Primary Credit Analyst:||Barbara Duberstein, New York (1) 212-438-5656;|
|Secondary Credit Analyst:||Stuart Plesser, New York (1) 212-438-6870;|
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