KBRA Affirms Ratings for Cantor Fitzgerald, L.P.

12 Apr 2024   |   New York


KBRA affirms the BBB issuer and senior unsecured debt ratings for Cantor Fitzgerald, L.P. (“Cantor” or “the firm”). Domiciled in New York, NY, Cantor is a full-service, globally diverse capital markets firm with controlling stakes in wholesale brokerage and financial technology services and commercial real estate brokerage and fee service companies. The rating Outlook is Stable.

The rating is underpinned by management’s long record of producing relatively steady operating results, irrespective of the operating environment, adapting to regulatory changes and market evolution, and ongoing emphasis on risk management, as well as consistent financial leverage and liquidity management policies. Cantor’s lower risk matched-book, securities trading operation, and agency brokerage business model that contribute to both a higher quality balance sheet and comparatively stable revenue performance, also support the ratings.

Profitability, while reasonably stable as indicated above, is somewhat low for the rating, primarily due to elevated compensation expense (although a sizeable percentage is variable and non-cash). While revenue performance generally follows the contours of capital markets conditions, KBRA considers Cantor’s amalgamation of collateralized finance, agency flow trading, and various advisory services business to be sufficiently diversified to absorb an environment of subdued trading and transaction volumes.

Consistent and disciplined financial leverage management also reinforces the current ratings and remains a key factor for the rating category. Cash coverage of short-term obligations and aggregate liquid assets and contingency funding coverage of unsecured debt remains adequate. Reliance on short-term debt is low; long-term debt maturities are well laddered.

To access rating and relevant documents, click here.

Click here to view the report.



Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003872

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