Fitch rates Virtu loan BB-

Fitch Ratings said it assigned a BB- long-term issuer default rating to VFH Parent LLC, a debt-issuing subsidiary of Virtu Financial Inc., and a BB- expected rating to the new $825 million five-year senior secured term loan B being issued by VFH in connection with the firm's acquisition of KCG Holdings Inc. The outlook is stable.

The agency said Virtu’s ratings reflect the firm's established market position as a technology-driven market-maker across various venues, geographies and products, its diversified and growing revenue base, scalable business model and experienced management team.

The ratings are constrained by elevated operational risk inherent in technology-driven trading, reliance on volatile transactional revenue, potential competitive threats arising from evolving market structures and technologies and heightened regulatory scrutiny of designated market-making, high-frequency trading and dark pools, Fitch said.

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