Fitch Ratings has affirmed the Long-Term (LT) Issuer Default Rating (IDR) of 'BBB' of Computershare Trust Company, National Association (CTCNA).

The Rating Outlook on the LT IDR is Stable. Fitch has also affirmed CTCNA a Short-Term (ST) IDR of 'F3'.

Fitch has withdrawn CTCNA's Support Rating as it is no longer relevant to the agency's coverage following the publication of Fitch's updated 'Bank Rating Criteria' on Nov. 12, 2021. In line with the updated criteria, Fitch has assigned CTCNA a Shareholder Support Rating (SSR) of 'bbb'.

Key Rating Drivers

CTCNA's LT IDR is driven by Fitch's view of support from the firm's parent, Computershare Limited (CPU), reflecting Fitch's view that CPU has a very high propensity and ability to provide extraordinary support to CTCNA, should the need arise. As such, Fitch has assigned a Shareholder Support Rating (SSR) of 'bbb' to CTCNA.

The SSR incorporates Fitch's view that CTCNA plays an important strategic role in the Computershare group, especially with the recent asset purchase transaction of Wells Fargo's Corporate Trust Services (CTS) business unit. Fitch has not assigned a Viability Rating to CTCNA. Fitch views CTCNA as operationally and financially integrated into the group, and as such, does not have a meaningful standalone credit profile outside of its parent.

A disposal of CTCNA by CPU is difficult to conceive and Fitch incorporates this view into the SSR. CTCNA is the holder of various charters, credit ratings and acts as a party to material legal agreements. These agreements not only pertain to CTCNA's important customer and legal agreements as it relates to its corporate trust and business services, it is also a party to legal agreements with other CPU business segments. Fitch views the pool of potential acquirors of CTCNA as small in light of the specialized and niche nature of its business.

While CTCNA has not issued debt externally, the rating incorporates the expectation that CPU will guarantee any external debt, if and when issued by CTCNA, as supported by outstanding legal commitments.

The ST IDR is driven by institutional support flowing from CPU and application of the New Criteria that Fitch applies to rate banks globally. The ST IDR of 'F3' is the lower of available ratings according to the Bank Rating Criteria's Ratings Correspondence Table and reflects Fitch's view of CPU's short-term credit profile.

Rating Sensitivities

Factors that could, individually or collectively, lead to negative rating action/downgrade:

CTCNA's assigned LT IDR is driven exclusively by Fitch's view of Shareholder Support. The rating is therefore sensitive to Fitch's view of CPUs ability and propensity to support CTCNA should the need arise, and could result in negative changes in the SSR;

The ST IDR is sensitive to negative changes in the LT IDR or to negative changes in Fitch's view of the short-term credit profile of CPU.

Factors that could, individually or collectively, lead to positive rating action/upgrade:

CTCNA's assigned LT IDR is driven exclusively by Fitch's view of Shareholder Support. The rating is therefore sensitive to Fitch's view of CPUs ability and propensity to support CTCNA should the need arise, and could result in positive changes in the SSR;

The ST IDR is sensitive to positive changes in the LT IDR or to positive changes in Fitch's view of the short-term credit profile of CPU.

Best/Worst Case Rating Scenario

International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG Considerations

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg

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