Standard & Poor's Gives Saxo Bank BBB Rating

The rating is a measure of a firm's financial strength and creditworthiness and provides guidance to investors who may consider lending or investing to the entity.。

A AAA rating means that the company's financial position is adequate compared to its commitments, and a BBB rating is the lowest rating that a corporate bond can be considered an investment grade.。

Firms with investment-grade classifications are generally able to raise capital at lower interest rates and with a broader investor base, and are more confident of receiving annual coupons and principal repayments at maturity from investment-grade borrowers。

Standard & Poor's investment-grade rating is also the bank's first public credit rating.。

Saxo Bank Deputy CEO and Director of Operations Søren Kyhl said:

"We are pleased to have received a BBB rating from S & P Global Ratings, which demonstrates our strong capital position and business model, prudent risk management approach, and ambitious growth strategy.。We are also excited about becoming SIFI this year.。All in all, this is a testament to our continued commitment to providing quality platforms, products and services to a growing number of retail customers and institutional partners.。"

Systemically Important Financial Institutions

Systemically important financial institutions are organizations that are considered "too big to fail," such as banks and insurance companies.。They are inherent operations of the domestic financial system or, in some cases, of the global financial system。

By being accredited by SIFI Denmark, Saxo Bank will join the current elite institutional group of Danske Bank, Nykredit Realkredit, Nordea Kredit, Jyske Bank, Sydbank and DLR Kredit.。

Denmark is not the largest economy, with a GDP of $398 billion in 2021.。However, Saxo Bank's business is quite significant in this regard, fully illustrating the progress made by the broker over the past 25 years.。

While becoming a SIFI is a sign of success, it also means that the company will be subject to stricter regulatory and liquidity requirements aimed at maintaining the stability of its financial position.。