Moody's continues review of NEX

Moody's Investors Service said it will continue to review for upgrade the ratings of NEX Group plc's subsidiaries, including NEX Group Holdings plc and affiliates.

The review continues pending completion of the acquisition of NEX Group by CME Group Inc., Moody's explained.

The review began in April following news that CME agreed to acquire NEX Group for £3.9 billion in cash and CME common shares, the agency said.

Moody's said it expects to complete its review once there is substantial certainty of the closing of the transaction, including the receipt of all regulatory and shareholder approvals.

The acquisition is expected to be completed by the end of 2018.

The acquisition offers potential benefits to NEX Group's creditors. CME has not indicated its post-acquisition plans with respect to NEX Group's legal structure or its rated debt obligations, Moody's noted.

But even if such instruments remain outstanding and NEX Group remains as a separate wholly-owned subsidiary of CME, the likelihood of implicit support from CME could still reduce the risk of default for NEX Group's creditors and result in a ratings upgrade, the agency said.

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