Moody’s affirms SGX’s Aa2 rating, keeps outlook stable

Moody’s expects SGX’s pre-tax margin to remain about 55% over the next 12–18 months.

Moody’s Ratings affirmed Singapore Exchange Limited’s (SGX) Aa2 long-term issuer ratings and kept the outlook stable, citing robust profitability and low leverage.

The Aa2 is two notches above SGX’s A1 standalone assessment, reflecting an assumed high likelihood of support from the Government of Singapore in a stress scenario, Moody’s said.

Moody’s expects SGX’s pre-tax margin to remain about 55% over the next 12–18 months, with adjusted pre-tax earnings projected to grow mid- to high-single digits.

Drivers include domestic equity-market reforms, broader client use of diversified derivatives, higher participation in T+1 derivative sessions, and momentum from an OTC FX franchise built through 2020–2021 acquisitions.

Leverage improved, with Debt/EBITDA at 0.8x as of 30 June 2025, down from 1.0x a year earlier. Moody’s noted SGX remains open to debt-funded M&A but expects leverage to stay manageable given strong cash and coverage metrics.

Moody’s also described the creditworthiness of SGX’s clearing houses as very strong, citing profitability, risk management aligned with global best practices, and liquid resources well above regulatory requirements.

An upgrade is unlikely unless SGX materially scales up without eroding margins or increasing leverage.

Potential downgrade triggers include Debt/EBITDA above 2.0x without a credible deleveraging plan, intensified competition pushing pre-tax earnings below $400m, margins below 42%, and margin volatility above 10%, or higher capital/liquidity needs at the clearing houses.

SGX reported $4.1b in total assets as of 30 June.