The United Kingdom-based risk management and research firm, Thomas Murray Data Services, has upgraded the Central Securities Clearing System Plc from A- to A, which indicates low overall risk. The overall rating of A reflects a weighted average of seven risk components, according to a statement by the company.
The rating for asset servicing risk has been omitted from the overall risk rating since the CSCS takes no active part in the entitlement calculation or processing of corporate actions in the market. The outlook of the CSCS rating is positive owing to developments taking place in the course of 2016-17, with a positive impact on counterparty risk, asset safety risk, operational risk and financial risk, according to the statement.
While commenting on the rating, the Managing Director and Chief Executive Officer of the CSCS, Mr. Kyari Bukar, said, “The upgrade from A- to A is a significant milestone towards being a globally respected and leading central securities depository in Africa. The key upgraded areas further indicate that we made notable improvements in managing our market overall risks to low level in line with best practices.