Moody’s revises VHF Parent to stable

Moody's Investors Service said it affirmed VFH Parent LLC's Ba3 issuer and senior secured bank credit facility ratings following Virtu Financial, Inc.'s announcement that it made a preliminary, non-binding proposal to acquire KCG Holdings, Inc. (B1 stable).

VFH Parent’s outlook was changed to stable from positive.

Moody's said the outlook change was based upon its view that Virtu Financial’s proposal to purchase a rival that is roughly twice its size (in terms of net revenues and total assets) demonstrates a shift to a more aggressive strategic policy.

In its announcement, Virtu Financial said that there are no assurances that any transaction will result from its proposal.

Moody's said that should no deal occur, there is an increased risk that Virtu Financial would seek another acquisition target or engage in other shareholder-oriented transactions, according to a news release.

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