Fitch: Outlook negative for Cantor Fitzgerald, BGC Partners

Fitch Ratings said it changed the outlook for Cantor Fitzgerald, LP and BGC Partners Inc. to negative from stable and affirmed their BBB long-term issuer default ratings, F2 short-term issuer default ratings and BBB senior debt ratings.

The agency said the affirmation reflects Cantor's established position in the institutional middle-market brokerage space, moderate risk profile due to its distribution-based business model, controlled leverage and good funding and liquidity management.

The outlook revision reflects persisting headwinds facing the industry, including low trading activity due to regulatory uncertainties, euro zone debt concerns, sluggish U.S. recovery and slowdown in Asia; the challenging operating performance at BGC, which has experienced significant decline in financial brokerage-related revenues; and Cantor's commercial real estate securitization activities, Fitch said.

The agency also noted that Cantor faces potential emerging liquidity/refinancing risk associated with $300 million of debt coming due in June 2015.

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