27th Jul 2018 06:54
LONDON (Alliance News) - Moody's Investors Service late Thursday said it continues to review Baa3 senior unsecured rating of NEX Group PLC for a potential upgrade.
The review was initiated in April following the American financial market firm CME Group Inc agreement to acquire the financial technology company for GBP3.9 billion in cash and shares.
CME was assigned Aa3 senior unsecured rating with stable outlook.
The review for upgrade reflects the potential benefits to NEX's creditors if it is acquired by the higher rated CME.
Although CME has not yet announced its post-acquisition plans with respect to NEX's legal structure or its rated debt obligations, Moody's said that the potential of rating upgrade is high.
The ratings agency said that even if these instruments remain outstanding and NEX remains as a separate subsidiary of CME, the likelihood of implicit support from CME could still reduce the risk of default for NEX's creditors.
Moody's said it expects to complete its review once there is substantial certainty of the closing of the transaction including the receipt of all regulatory and shareholder approvals. The acquisition is expected to be completed in the second half of 2018.
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