Moody's cuts RJO

Moody's Investors Service said it downgraded to B3 from B2 the corporate family rating of RJO Holdings Corp.

The outlook is negative.

The agency noted that the downgrade reflects the sizable increase in the company's cash-flow leverage as a result of both earnings weakness and $50 million of additional borrowing under RJO's revolving credit facility.

RJO's second and third quarter results have been negatively affected by the risk aversion of its end-clients in the introducing broker segment, the agency said.

In many cases, RJO's clients have been reducing their trading activity and balances in the wake of unusually high market volatility, Moody's noted.

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