S&P rates KCG loan BB-, notes B

Standard & Poor's said it assigned its BB- issuer credit rating to KCG Holdings Inc.

The outlook is stable.

At the same time, the agency assigned its BB- issue-level rating to the company's $535 million first-lien term loan due 2017 and its B issue-level rating to the 8¼% $305 million senior secured second-lien notes due 2018, which the company issued to finance a portion of the transaction.

The action follows the announcement that the merger between Knight Capital Group and Getco Holding Co. LLC was completed as of July 1, and the two companies have been combined as part of KCG Holdings Inc., a new publicly traded holding company.

"Our ratings on KCG Holdings Inc. reflect the highly competitive and transactional nature of the firm's market-making and electronic brokerage businesses, the influence of market volatility and volumes on its revenues, the firm's exposure to operational and model risk, and its evolving risk-management framework," S&P credit analyst Sebnem Caglayan said in a news release.

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