Moody’s rates Virtu CFR, facility Ba3

Moody's Investors Service said it assigned a Ba3 corporate family rating to Virtu Financial Inc. and a Ba3 rating on the senior secured credit facility of Virtu's subsidiary, VFH Parent LLC.

The outlook is positive.

This action follows the company's announced intention to refinance its existing loan via the issuance of a $540 million new term loan B due 2023.

Moody’s said the Ba3 ratings with a positive outlook reflect Virtu's strong track record of risk control and financial performance while operating as an electronic market maker in a wide variety of market environments.

Financial performance and debt coverage was strong in 2015, with the firm generating $322 million in EBITDA (excluding $44 million of IPO-related share compensation). As a result, the firm has maintained solid debt service capacity with debt/EBITDA of 2 times and an EBITDA/interest expense of 9.7 times in 2015 (inclusive of Moody's operating lease adjustment).

Virtu also maintains adequate liquidity; as of Q2 2016, the company had a cash balance of $149 million as well as a series of working capital facilities at its operating subsidiaries, the agency added.

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