KBRA Assigns Issuer Rating for Millennium Consolidated Holdings, LLC

NEW YORK--()--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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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical:
Kroll Bond Rating Agency
M Scott Durant, 301-969-3248
Director
sdurant@kbra.com
or
Ian Jaffe, 646-731-3302
Managing Director
ijaffe@kbra.com
or
Joseph Scott, 646-731-2438
Managing Director
jscott@kbra.com

Contacts

Analytical:
Kroll Bond Rating Agency
M Scott Durant, 301-969-3248
Director
sdurant@kbra.com
or
Ian Jaffe, 646-731-3302
Managing Director
ijaffe@kbra.com
or
Joseph Scott, 646-731-2438
Managing Director
jscott@kbra.com