KBRA Assigns Rating to $400 Million Senior Unsecured Notes Issued by Clear Street Holdings LLC
1 Jun 2026 | New York
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.
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