In the latest blow to the exchange, S&P Global Ratings has downgraded its credit rating following findings from the ASIC report.
S&P Global Ratings has downgraded ASX’s longer term issuer credit rating from AA- to A+, revising its outlook to stable following a prior negative outlook set in December 2025.
S&P noted that the findings released in the Australian Securities and Investments Commission’s (ASIC) final report contributed to the downgrade.
“The report highlighted shortcomings in the group’s governance and risk management following persistent operational failures that will require significant investment to address over several years. As a result, we have removed the positive comparable adjustment on our ratings on ASX,” S&P wrote.
Released on 31 March, the report was the culmination of ASIC’s nine-month inquiry into the exchange. Building on the interim findings released in December, it added more detailed support for the panel’s recommendations, including case study examples.
The ASX said it is committed to addressing the ASIC Inquiry’s interim and final reports by implementing its Commitments Plan, which includes strengthening governance and leadership, improving independence of its clearing and settlement facilities, and resetting its ‘Accelerate’ transformation program.
ASIC’s program also imposes an additional $150 million capital charge on the ASX to ensure it maintains adequate financial resources until remediation is complete.
S&P said it believes the program of work to address governance and risk management issues is underway, but will take time to deliver the necessary changes.
“Our base case remains that ASX will continue to have strong revenue growth to support its required investments, as most of its businesses continue to benefit from market movements. We believe the costs associated with implementing the package will increase ASX’s total expenses over the implementation period.”
It noted that in January 2026, the ASX had announced a 20 to 23 per cent increase in expenses in fiscal 2026. The company is set to provide further expense guidance for fiscal 2027 by the end of this financial year.
The ASX said the rating will not affect its capital, liquidity or funding position.
At the same time, S&P said its stable outlook reflects expectations that the ASX will retain its dominant market position over the next two years, but warned it could downgrade the exchange if its view of risk controls and practices weakens.
“We could also lower the ratings if we perceive a material diminution of the group’s franchise with key stakeholders, leading to the emergence of significant competition in its core markets, materially weaker profitability, or both.
“Finally, we would lower the long-term rating if ASX sharply increases its leverage with its adjusted debt-to-EBITDA ratio staying above 1.75x.”
It added that an upgrade would most likely hinge on the successful completion of the remediation program, though it considers this unlikely within the next two years.
The move follows a series of operational incidents and heightened regulatory scrutiny that have weighed on the exchange in recent years. These have included the cancellation of its distributed ledger technology replacement of CHESS in 2022 and a CHESS batch settlement failure in 2024.
The ASX has also recently appointed senior superannuation industry leaders to its newly-formed advisory group on corporate governance. Replacing the ASX Corporate Governance Council and chaired by former Reserve Bank governor, Dr Philip Lowe, the group will support the ASX in developing the corporate governance principles and recommendations.
