Moody's may cut Raymond James

Moody's Investors Service said it placed Raymond James Financial, Inc.'s ratings under review for possible downgrade.

This action results from news that Raymond James signed a definitive agreement to acquire Morgan Keegan & Co., Inc. and related affiliates, Moody's said.

The agency said the acquisition will result in Raymond James having an increased debt burden and higher cash flow leverage - a departure from the firm's historic financial profile, the agency said.

This action also reflects a concern that Raymond James has substantial execution risk in retaining financial advisors from Morgan Keegan's private client franchise and the accompanying revenues generated by its producers, Moody's added.

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