Article Tools
NEW YORK (AP) - Moody's Investors Service on Wednesday upgraded its rating on Nasdaq OMX Group Inc. by one notch to the lowest level of investment grade.
Moody's moved Nasdaq's rating to "Baa3" from "Ba1," with a stable outlook. The rating agency said Nasdaq's improved rating was supported by the fact it has reduced debt by $435 million so far in 2009.
"Nasdaq OMX has demonstrated discipline when realizing merger cost synergies and investing in its platform while generating free cash flow to pay down debt," Moody's Senior Vice President Peter Nerby said in a statement.
Also Wednesday, Moody's put NYSE Euronext on review for a possible downgrade, saying its leverage is high for a firm with long-term debt rated "A2," the sixth-highest rating for credit quality.
Moody's said the speed at which NYSE seems to be deleveraging for the fourth quarter and 2010 are closer to more pessimistic estimates.
"Management is currently directing cash flow towards capex, acquisitions, and dividends as opposed to debt repayment," Nerby said.
NYSE shares rose 36 cents to $27.33 in afternoon trading. Nasdaq shares rose 21 cents to $18.60.
Rate this article
