Fitch Assigns 'A/F1' IDRs to Goldman Sachs International

NEW YORK--()--Fitch Ratings has assigned IDRs of 'A/F1' to Goldman Sachs International (GSI), a wholly-owned subsidiary of The Goldman Sachs Group, Inc. (Goldman). Fitch has affirmed GSI's existing ratings including the 'A/F1' long- and short-term ratings associated with GSI's senior secured note program. A complete list of GSI's ratings follows this release. The Rating Outlook for GSI is Stable, in line with the Outlook of Goldman.

RATING RATIONALE

The IDRs for GSI and Goldman are equalized, which reflects Fitch's view that GSI is core and integral to Goldman's business strategy and operations. Fitch believes Goldman would fully support GSI in the event of need.

GSI is Goldman's major non-U.S broker-dealer and a critical part of Goldman's global operations. GSI's activities cover the broad spectrum of investment banking and capital market activities including advisory and underwriting; market making in equities, fixed income, currencies, and commodities; investment management; and investing/lending activities.

Fitch believes there is a high level of management/operational integration with other core Goldman operations. GSI maintains comfortable liquidity and capitalization, which are augmented by the capacity to tap liquidity and additional capital from Goldman in the event of need.

SENSITIVITY/RATING DRIVERS

Given Fitch's view that GSI is a core subsidiary of Goldman, GSI's IDRs would change in conjunction with any changes to Goldman's IDRs. In the unlikely event that Fitch no longer considers GSI to be a core part of Goldman's operations, GSI's IDRs could be negatively affected. Rated notes issued under GSI's secured note program are guaranteed by Goldman.

Goldman's IDRs were affirmed on Oct. 10, 2012 with a Stable Outlook as part of Fitch's Global Trading and Universal Bank (GTUB) periodic review. The IDRs continue to be supported by Goldman's leading investment banking franchise, strong risk management, solid liquidity position, and better-than-average capital position. These factors are reflected in Goldman's 'a' viability rating. Goldman's IDRs are further underpinned by the prospect of U.S. government support in the event of need.

Goldman's IDRs have limited upward potential, given the company's business focus on the capital markets. Goldman's IDRs could be negatively pressured if its financial profile deteriorates and Fitch's view of its support changes. For additional details, see 'Fitch Affirms Goldman Sachs' IDRs at 'A/F1'; Outlook Stable' dated Oct. 10, 2012.

Fitch assigns the following ratings with a Stable Outlook

Goldman Sachs International

--Long-term IDR 'A';

--Short-term IDR 'F1'.

Fitch affirms the following ratings:

Goldman Sachs International

--Senior Secured Long-term Notes at 'A';

--Senior Secured Short-term Notes at 'F1';

--Short-term Debt at 'F1'.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria' (Aug. 15, 2012);

--'Rating FI Subsidiaries and Holding Companies' (Aug. 10, 2012).

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686181

Rating FI Subsidiaries and Holding Companies

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679209

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Contacts

Fitch Ratings
Primary Analyst
Joseph Scott
Senior Director
+1-212-908-0624
Fitch Inc.
One State Street Plaza
New York, NY 10001
or
Secondary Analyst
Nathan Flanders
Managing Director
+1-212-908-0827
or
Committee Chairperson
Joo-Yung Lee
Managing Director
+1-212-908-0560
or
Media Relations:
Brian Bertsch, +1-212-908-0549 (New York)
brian.bertsch@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Joseph Scott
Senior Director
+1-212-908-0624
Fitch Inc.
One State Street Plaza
New York, NY 10001
or
Secondary Analyst
Nathan Flanders
Managing Director
+1-212-908-0827
or
Committee Chairperson
Joo-Yung Lee
Managing Director
+1-212-908-0560
or
Media Relations:
Brian Bertsch, +1-212-908-0549 (New York)
brian.bertsch@fitchratings.com