KBRA Assigns Rating to $400 Million Senior Unsecured Notes Issued by Clear Street Holdings LLC

NEW YORK--(BUSINESS WIRE)--KBRA assigns a rating of BBB- with a Positive Outlook to the $400 million senior unsecured notes issued by Clear Street Holdings LLC (“CSH”) due May 31, 2031.

Key Credit Considerations

Support for the rating is anchored by the experienced management team that includes risk management, prime brokerage, and financial and treasury management personnel with specialized capital markets experience. The deliberately constructed technological foundation and suite of cloud-based applications that encapsulate real-team performance and risk management further support the rating.

Not dissimilar to broader sector trends, CSH’s consolidated financial performance in 2025, and YTD 2026, reflects ongoing strength in the core collateralized finance business at its principal broker-dealer, including synthetic equity finance, and prime brokerage operations, with evidence of further revenue diversification in other areas, such as investment banking.

On a pro forma basis, factoring in the $400 million in incremental debt, of which, a meaningful portion will be invested in the form of equity at the lead broker-dealer, standalone financial leverage at CSH will crest at the upper end of the range of KBRA’s rating sensitivity. KBRA continues to expect that the CSH standalone double leverage ratio will be managed at 125%.

Rating Sensitivities

Ratings could be upgraded during the next 12-24 months through ongoing earnings development and diversification, coupled with continued modest financial leverage (consolidated & parent only). Conversely, rating pressure would most likely result from a significant risk management breakdown or if the fixed charge coverage ratio (excluding non-cash expenses) and double leverage ratio, on a parent only basis, were to be managed below 4x-5x or above 125%, respectively.

To access ratings and relevant documents, click here.

Methodology

• Financial Institutions: Securities Firm Global Rating Methodology

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1015249