Moody's snips Hudson River Trading

Moody's Investors Service said it downgraded Hudson River Trading LLC's corporate family rating to Ba2 from Ba1 and downgraded its issuer rating and senior secured first-lien term loan rating to Ba3 from Ba2. Moody's also changed HRT's outlook to negative from stable.

“Moody's said HRT's downgrade reflects evidence from the firm's recent risk appetite, and related considerations pertaining to risk management, not commensurate with its previous rating level. Moody's said HRT's evolving trading strategies and related expansion into certain regions and markets outside of its core historical areas of focus, and which generally have a weaker market structure relative to its historical operations, have increased the risks to which it is exposed,” the agency said in a press release.

The negative outlook reflects the continuing credit risks associated with its increased risk appetite, and the related need to have increased risk awareness and risk management techniques to offset its evolving risk profile, Moody’s said.

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