Moody's changes Liquidnet view to negative

Moody's Investors Service said it changed to negative from stable the outlook on Liquidnet Holdings, Inc. Moody's affirmed Liquidnet's Ba3 corporate family rating and Ba3 senior secured term loan rating.

The change in outlook to negative reflects declining revenue and profitability at Liquidnet as a result of a weaker trading environment for alternative trading venues in 2019. Liquidnet's narrow revenue base and reliance on trading volume have resulted in EBITDA margin and debt leverage deterioration, with possible weaknesses in its cost flexibility, said Moody's.

Despite the firm's weaker financial profile, Moody's said Liquidnet retains ample liquidity, with a significant balance of cash on hand and a still modest amount of debt leverage for its rating level.

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