S&P turns Hudson River view to positive

S&P said it revised its outlook for Hudson River Trading to positive from stable and affirmed the BB- ratings on the company and its senior secured debt.

“The outlook revision reflects our view that HRT could continue to enhance its capitalization in the coming quarters. Although the size of HRT's period-end balance sheet has grown considerably the past few years from the firm's trading operations growing, including more positions held overnight, the company has also been able to generate and retain strong earnings to grow equity capital. The resulting substantial increase in equity has bolstered our risk-adjusted capital (RAC) ratio, despite considerable growth in the balance sheet,” S&P said in a press release.

S&P noted HRT drove its RAC ratio to 14.3% as of Sept. 30 from 10.9% at year-end 2022.

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