Moody's rates KCG loans Ba3

Moody's Investors Service said it assigned a B1 corporate family rating to KCG Holdings, Inc. and a Ba3 rating to a $535 million secured first-lien term loan as well as a $20 million revolving credit facility.

KCG is a new holding company formed to facilitate the $1.3 billion planned merger between Knight Capital Group and Getco LLC, scheduled to close on July 1.

The outlook is stable.

The Ba3 rating on the facility receives one notch of uplift from the B1 corporate family rating.

Moody's said this uplift reflects the loan's structural protections and its seniority within the capital structure of the holding company.

Structural protections include perfected security interests in the assets of the holding company as well as a sizeable tranche of second-lien securities that should limit senior creditor losses in the case of a default, the agency said.

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