Moody's rates Jump Ba1, loan Ba2

Moody's Investors Service said it assigned a Ba2 senior secured first-lien term loan rating to Jump Financial, LLC. The agency also assigned Jump a Ba1 corporate family rating.

“Moody's said Jump Financial's Ba2 senior secured term loan was issued by Jump Financial's holding company, and accordingly this rating is one notch below the firm's Ba1 CFR because obligations at the holding company are structurally inferior to those of Jump Financial's operating companies, where the preponderance of the group's liabilities reside,” the agency said in a press release.

The Ba1 CFR reflects the firm’s strong profitable track record, liquid balance sheet and healthy levels of capital. Moody's said the rating incorporates the inherently high level of operational and market risk in Jump Financial's relatively narrow principal trading and market making activities, that could result in rapid and severe losses and a deterioration in liquidity and funding in the event of a severe risk management failure,” Moody’ said.

Jump Financial plans to borrow $400 million and will use the net proceeds to repay loans and for incremental trading capital and general corporate purposes, Moody’s said.

The outlook for Jump Financial is stable.

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