Fitch Ratings has affirmed the Long-Term and Short-Term Issuer Default Ratings (IDRs) of The Bank of New York Mellon Corporation (BK) at 'AA-' and 'F1+', respectively.
Fitch has also affirmed the ratings of BK's operating subsidiaries, including The Bank of New York Mellon (BNYM) and The Bank of New York Mellon Trust Company, N.A. The Rating Outlook remains Stable. This rating action follows Fitch's annual review of the U.S. Trust and Processing banks.
Key Rating Drivers
Viability Rating (VR) Underpins Issuer Default Rating (IDR): BK's IDR is driven by its 'aa-' VR, strong franchise, conservatively managed balance sheet and strong liquidity. These attributes are offset by Fitch's assessment of the company's relatively weaker earnings and profitability and capital and leverage relative to similarly rated banks. The Outlook is Stable.
Leading Franchise Supports Ratings: The ratings are supported by BK's leading franchise in the global trust and custody segment; competitive position in asset and wealth management businesses; and leading position in securities clearing. The bank's business model produced a high level of relatively stable fee-based revenue (of about 74.8% of total revenue) in 2025, which Fitch views favorably. The scale and breadth of product offerings in businesses with high barriers to entry results in strong and sticky client relationships.
Strong Risk Culture: Fitch believes BK has strong controls and effective oversight across all risk domains, with a conservative risk culture embedded across the organization. Fitch considers the company's operational risk, its main risk factor, to be well managed, supported by a low operational loss history. Cyber risk is also an important risk factor for BK, given its significant role in providing market infrastructure, particularly in the U.S. Treasuries market within its Clearance and Collateral Management business.
Low Credit Footprint: BK's loan book, at 16% of total assets, is among the proportionately smallest of Fitch-rated U.S. banks. Fitch considers outstanding and off-balance sheet credit exposure to be high quality, with exposures primarily to financial counterparties with strong collateral. The investment portfolio holds limited credit risk with 99% of the portfolio rated at or above 'AA-'. Office commercial real estate (CRE) drove net charge offs to 12 bps of total loans in 2024; BK's exposure to this segment is limited at around 10% of risk-based capital. In the Federal Reserve's 2024 severely adverse stress test scenario, provisions of loan losses of $1.6 billion represented one of the lowest loss severity rates (2.4% of total loans) among the 31 reported banks.
Operating Margin Growth: BK's fee-centric business model is inherently balance sheet-light and supports strong operating profit relative to risk-weighted assets (RWAs), Fitch's core earnings and profitability benchmark. Operating profit/RWA rose to 4.0% in 2025 from 3.5% in 2024 and 2.5% in 2023. The improvement reflects cost optimization, a more developed cross-selling strategy, and favorable market conditions.
The revision of the Earnings and Profitability Outlook to 'Positive' reflects Fitch's view that the higher earnings level is likely to be sustained over the rating horizon, supported by disciplined expense management and credible revenue growth expectations. Growth in higher-margin Payments and Trade and Clearance and Collateral Management businesses further diversifies revenue away from market-level sensitivity and could support additional upside in the earnings and profitability score over time.
Solid Capital Levels: Fitch considers the bank's capital, as measured by its common equity Tier 1 (CET1) ratio, to be adequate given the bank's relatively low-risk balance sheet. CET1 was 11.9% at 4Q25, above the bank's medium-term target of around 11%. BK manages capital primarily to a Tier 1 leverage ratio of about 6%, which is its binding constraint. Fitch expects BK to continue distributing excess capital in 2026, although deposit growth and/or higher-than-anticipated rates could pressure the leverage ratio and reduce buybacks. Fitch also expects the updated enhanced supplementary leverage ratio (eSLR) rules to have minimal impact on BK's capital planning, while providing greater flexibility to shift capital between subsidiaries more efficiently.
High Balance Sheet Liquidity: Fitch considers BK's low-risk investment portfolio and highly liquid balance sheet profile to be key rating strengths, complemented by the bank's high levels of cash and reputation as a safe haven for deposits. The average loan-to-deposits ratio for 4Q25 of 24.6% was one of the lowest among Fitch-rated banks globally. The bank's position as the world's largest custodian and its growing Payments and Trade business bring in significant levels of operational deposits and non-interest-bearing deposits. BK's deposit base has proven countercyclical during times of market stress. The rating also reflects BK's strong access to global capital markets and high level of contingent liquidity.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
Fitch believes the main threat to BK's business model and ratings would be a large, idiosyncratic technological (including cyber), counterparty or operational loss leading to reputational damage that causes clients to withdraw assets from the bank. Fitch believes these risks are well monitored and controlled but also inherently difficult to predict and quantify. A large incident that causes a loss equivalent to 5% of revenue or greater would likely prompt Fitch to consider a negative rating action;
CET1 ratio approaches or dips below 10% for several quarters in the absence of a credible plan to improve the ratio. Fitch expects the bank to maintain Tier 1 leverage above regulatory minimums;
Ifthe bank's level of annualized operating profit to RWAs falls below 1.5% for several quarters or demonstrate higher levels of earnings volatility, Fitch may revise the Outlook on the Long-Term IDRs to Negative or downgrade the VR and Long-Term IDRs;
An inability to effectively invest in and scale digital-asset-related technologies, which could impair BK's capacity to mitigate emerging competitive pressures in asset servicing.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
The ratings are already near the top of the scale for Fitch's global rated bank universe. As a result, Fitch believes there is limited potential for upward rating momentum.
Fitch expects that bank ratings in developed resolution regimes could change if the exposure draft 'Bank Rating Criteria' is implemented as proposed when it becomes final criteria.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
Government Support Rating (GSR): BK and its subsidiaries' GSR of 'ns' reflects Fitch's view that senior creditors cannot rely on receiving full extraordinary support from the sovereign in the event that BK becomes non-viable. In Fitch's view, implementation of the Dodd Frank Orderly Liquidation Authority legislation provides a framework for resolving banks that are likely to require holding company senior creditors to participate in losses, if necessary, instead of/or ahead of the company receiving sovereign support.
Senior Debt Ratings: BK's senior debt ratings are aligned with the firm's IDRs, as a default on these obligations equates to a default of the holding company.
Subordinated Debt and Other Hybrid Securities: The subordinated debt and hybrid securities are notched down from a common VR, in accordance with Fitch's assessment of each instrument's respective nonperformance and relative loss severity risk profiles, which vary considerably. The preferred stock is notched four levels below the VR of 'aa-', which serves as the anchor rating. The rating is notched two times for loss severity and two times for nonperformance. Consistent with Fitch's base case for notching subordinated debt of bank holding companies classified by the Federal Reserve as Category I, II, or III, the rating is notched two levels below BK's VR for loss severity.
Derivative Counterparty Ratings: Fitch affirmed the Derivative Counterparty Ratings (DCRs) for BK and its main operating banks as they either have significant derivatives activity or are counterparties to Fitch-rated structured finance transactions. The DCRs are at the same level as the respective companies' LT IDRs because they have no definitive preferential status over other senior obligations in a resolution scenario. Therefore, the ratings will move in line with the IDR.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
GSR: In Fitch's view, BK and its subsidiaries' GSRs would be sensitive to any change in U.S. sovereign support, which Fitch believes is unlikely.
Long-Term and Short-Term Deposit Ratings: The long-term and short-term deposit ratings for The Bank of New York Mellon (BNYM)are sensitive to any change to BK's Long-Term and Short-Term IDRs.
Senior Debt Ratings: Senior debt ratings are sensitive to any change in BK's IDRs.
Subordinated Debt and Other Hybrid Securities: Subordinated debt and other hybrid ratings are primarily sensitive to any change in BK's VR.
Derivative Counterparty Ratings: The DCRs of BK and its main operating banks are primarily sensitive to a change in the respective companies' Long-Term IDR. In addition, it could be upgraded one notch above the IDR if a change in legislation creates legal preference for derivatives over certain other senior obligations and, in Fitch's view, the volume of all legally subordinated obligations provides a substantial buffer to protect derivative counterparties from default in a resolution scenario.
SUBSIDIARIES & AFFILIATES: KEY RATING DRIVERS
Domestic Subsidiaries: The VRs remain equalized between BK and its material domestic operating subsidiaries, namely BNYM, BNY Mellon National Association, BNY Mellon Trust of Delaware and BNY Mellon Trust Company N.A. The common VR of BK and its material operating subsidiaries reflects the correlated performance, or failure rate, between the bank and these subsidiaries.
BNYM and other U.S. depositories' Long-Term IDRs are rated one notch above their VRs. This reflects the implementation of total loss-absorbing capital (TLAC) requirements for U.S. Global Systemically Important Banks (G-SIBs). The presence of substantial holding company debt reduces the default risk of domestic operating subsidiaries' senior liabilities, relative to holding company senior debt.
In addition, the intermediate holding company, BNY Mellon IHC, LLC (IHC), is meant to improve the resolvability of BK. Under this structure, the bank's holding company contributed substantial liquidity and capital to IHC, which it will then hold for the benefit of material entities. When assessing the parent's common equity double leverage, Fitch considers the resources available through the parent company and IHC, an important consideration for notching holding companies under Fitch's criteria.
International Subsidiaries: The IDRs of BK's material international subsidiaries, namely The Bank of New York Mellon S.A./N.V, Bank of New York Mellon S.A./N.V. - Luxembourg Branch, Bank of New York Mellon S.A./N.V. - Milan Branch, and The Bank of New York Mellon (International) Ltd., are shareholder support driven and are rated in line with BNYM, their intermediate parent, to reflect their role as material operating entities in the BK's mature resolution framework. Fitch believes a default at one of these entities represents significant reputational risk for the group.
Bank of New York Mellon S.A./N.V. - Milan Branch's Long-Term IDR is rated above its sovereign, Italy ('BBB' Long-Term Foreign Currency IDR) but in line with Italy's 'AA' Country Ceiling.
Long- and Short-Term Deposit Ratings: BNYM's domestic (uninsured) deposit ratings are rated one notch higher than its senior debt ratings, reflecting uninsured depositors' superior recovery prospects in case of default, given depositor preference in the U.S. Uninsured deposits outside of the U.S., through The Bank of New York Mellon S.A./N.V. do not benefit from a rating uplift, as they may not benefit from U.S. depositor preference rules unless the deposit is expressly payable at an office of the bank in the U.S. Since Fitch cannot determine which foreign branch deposits may be dually payable, they do not receive a rating uplift.
SUBSIDIARIES AND AFFILIATES: RATING SENSITIVITIES
VRs: The same sensitivities that apply to BK's VR would apply to the subsidiaries' VRs.
IDRs, Shareholder Support Ratings (SSRs) and Senior Debt Ratings: The subsidiary ratings would be sensitive to the same factors that could drive a change in BK's VR. The SSRs would be sensitive to any change in Fitch's view of the direct parent's ability and propensity to support its subsidiaries or a change to BK's.
The ratings of BK's international subsidiaries are also sensitive to factors described in the country risk section of Fitch's 'Bank Rating Criteria' as it relates to rating banks above the sovereign rating.
Deposit Ratings: Deposit ratings are sensitive to any change in each subsidiary's IDRs.
VR ADJUSTMENTS
The business profile score of 'aa-' is above the 'a' category implied score due to the following adjustment reason: business model (positive).
The earnings & profitability score of 'aa-' is above the 'a' category implied score due to the following adjustment reasons: historical and future metrics (positive).
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
RATING ACTIONS
Entity / Debt
Rating
Prior
Bank of New York Mellon S.A./N.V. - Luxembourg Branch (The)
LT IDR
AA
Affirmed
AA
ST IDR
F1+
Affirmed
F1+
Shareholder Support
aa
Affirmed
aa
BNY Mellon National Association
LT IDR
AA
Affirmed
AA
ST IDR
F1+
Affirmed
F1+
Viability
aa-
Affirmed
aa-
Government Support
ns
Affirmed
ns
long-term deposits
LT
AA+
Affirmed
AA+
short-term deposits
ST
F1+
Affirmed
F1+
The Bank of New York Mellon Corporation
LT IDR
AA-
Affirmed
AA-
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VIEW ADDITIONAL RATING DETAILS
Additional information is available on www.fitchratings.com
PARTICIPATION STATUS
The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer's available public disclosure.
APPLICABLE CRITERIA
Bank Rating Criteria (pub. 22 Mar 2025) (including rating assumption sensitivity)
Financial Institutions Climate Vulnerability Rating Criteria (pub. 09 Dec 2025)
ADDITIONAL DISCLOSURES
Dodd-Frank Rating Information Disclosure Form
Solicitation Status
Endorsement Policy
ENDORSEMENT STATUS
Bank of New York Mellon S.A./N.V. - Luxembourg Branch (The) EU Endorsed, UK Endorsed
Bank of New York Mellon S.A./N.V. - Milan Branch (The) EU Endorsed, UK Endorsed
Bank of New York Mellon Trust Company, National Association (The) EU Endorsed, UK Endorsed
BNY Mellon National Association EU Endorsed, UK Endorsed
BNY Mellon Trust of Delaware EU Endorsed, UK Endorsed
Mellon Capital IV EU Endorsed, UK Endorsed
Mellon Funding Corp. EU Endorsed, UK Endorsed
The Bank of New York Mellon EU Endorsed, UK Endorsed
The Bank of New York Mellon (International) Limited EU Endorsed, UK Endorsed
The Bank of New York Mellon Corporation EU Endorsed, UK Endorsed
The Bank of New York Mellon S.A./N.V. EU Endorsed, UK Endorsed
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Solicitation Status
The ratings above were solicited and assigned or maintained by Fitch at the request of the rated entity/issuer or a related third party. Any exceptions follow below.
Fitch's solicitation status policy can be found at www.fitchratings.com/ethics.
Endorsement Policy
Fitch's international credit ratings produced outside the EU or the UK, as the case may be, are endorsed for use by regulated entities within the EU or the UK, respectively, for regulatory purposes, pursuant to the terms of the EU CRA Regulation or the UK Credit Rating Agencies (Amendment etc.) (EU Exit) Regulations 2019, as the case may be. Fitch's approach to endorsement in the EU and the UK can be found on Fitch's Regulatory Affairs page on Fitch's website. The endorsement status of international credit ratings is provided within the entity summary page for each rated entity and in the transaction detail pages for structured finance transactions on the Fitch website. These disclosures are updated on a daily basis.
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