CDS Clearing and Depository Services Inc. said Tuesday that the rating agency for industry custodians has reaffirmed its rating, indicating very low risk overall.

CDS says that Thomas Murray, the specialist custody rating, risk management and research firm, has affirmed its AA rating. “The ‘AA’ rating as assigned by Thomas Murray recognizes CDS Clearing’s ongoing commitment to minimize risk for market participants and the demonstrated robustness of its settlement process during financial instability,” it says, adding that the rating outlook is ‘stable’.

“The rating process involved a thorough review of CDS’s clearing and settlement process and gave special focus to the improvements that CDS and the Canadian market have implemented over the past year and the robustness of both the risk model and CDS Clearing operations during periods of high financial instability,” said Ian Gilhooley, president and CEO of The Canadian Depository for Securities Ltd.

The firm notes that it has several projects underway, which should help reduce liquidity risk and asset servicing risk in the future. While its overall rating is unchanged, CDS adds that it has introduced changes during the past year which have mitigated risk, including technology upgrades, various program enhancements, and the introduction of a new in-house training program.

IE