Research Update: GFI Group Inc. Ratings Lowered To 'B+' On Continued Weakness In Revenue And Profitability Metrics; Outlook Is Stable Jun 13
- Language: English
- Published: June 2013
We expect that tough market conditions in the U.S. and in the institutional brokerage industry, as well as the European financial crisis, may weaken GFI Group's profitability and could reduce its debt service capacity. In addition, changes in regulation, competition, and technology in GFI's niche are creating uncertainty regarding the company's revenue stability. We are placing our 'BBB-' ratings on GFI Group on CreditWatch with negative implications. To resolve the CreditWatch, we plan to meet with management to review its operational and financial plans for dealing with the weak and volatile operating conditions. On Jan. 27, 2012, Standard & Poor's Ratings Services placed its 'BBB-' counterparty credit and senior unsecured ratings on GFI Group Inc. on CreditWatch with negative implications....
Companies mentioned in this report are: GFI Group Inc.
Action: On CreditWatch:Negative
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.
GFI Group Inc.