Russia's National Settlement Depository (NSD) has been issued a CSD rating of A+, meaning that it has low overall risk.
Custody rating firm Thomas Murray issued the CSD, which reflects a weighted average of the six risk components and indicates a low risk exposure profile, with an 'on watch' outlook.
This outlook indicates there are significant developments in the marketplace that may affect overall risk in the near future, including the recent approval of the CSD law, which means NSD is likely become the appointed entity to act as central depository in Russia, as well as the forthcoming merger with the Depository Clearing Company (DCC).
In the area of asset servicing, NSD is the central paying agent for Bank of Russia's bonds, most municipal bonds and most corporate bonds. Simon Thomas, CEO and Chief Ratings Officer of Thomas Murray said:
"Following the merger between the previous National Depository Center and MICEX Settlement House, our analysis shows that NSD has made significant progress in harmonising procedures and minimising risks.
NSD's outlook remains on watch. We will monitor developments in the market and report on any impact on NSD's rating. Once the merger with DCC is completed further analysis will be required to assess the impact".
