Standard and Poor’s today said its ratings for Standard Chartered and its subsidiaries are not immediately affected by the charges made against the banking giant in New York for its Iran transactions.
In a statement issued Tuesday, S&P said its ratings on Standard Chartered Plc and its subsidiaries, including Standard Chartered Bank and others, are currently unaffected by the New York state bank regulator’s assessment that the banking group violated the law.
“The extent of the legal and regulatory actions against the group is yet to be certain,” the rating agency said.
The state of New York’s Department of Financial Services has charged Standard Chartered Bank of hiding over 60,000 secret transactions with Iran, involving $250 billion, while exposing the US financial system to terrorists, weapon dealers and drug kingpins.
Along with a warning for revoking its licence in New York state, the bank has been asked to explain its position in this matter on August 15.
“Although the bank’s operations and revenue sources are largely concentrated in Asia, we will continue to monitor the corresponding implication of the bank’s operational risk management, and the potential impact on the bank’s reputation, revenue-generating capability, and profitability,” S&P said.