NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has assigned an issuer rating of BBB- for Charlotte, North Carolina-based Millennium Consolidated Holdings, LLC (“MCH”). Additionally, KBRA has assigned an issuer rating of BBB for the wholly-owned lead operating subsidiary, Millennium Advisors, LLC (“MADV”), a SEC-registered broker-dealer firm. The ratings Outlook is Stable.
The assigned ratings are supported by MCH’s seasoned management team, which has a proven track record in electronic fixed income trading, as demonstrated by the lead subsidiary’s (MADV) consistent profitability since its founding. The rating also captures MCH’s comprehensive risk management program, particularly in combination with the firm’s trader compensation program, that aligns with the core company focus on execution and turnover of the balance sheet. Rating constraints include the firm’s niche trading focus and operating model, in which revenues tend to lack diversity, and therefore, could be at risk in the event of increased competition from other market players. Operational risk management remains at the forefront of the company’s business model, given the focus on electronic delivery and execution, though certainly appears to be well managed, with an established track record of nominal related issues.
The ratings are based upon KBRA’s Securities Firm Rating Methodology dated March 8, 2018.
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