Marex Spectron gets investment grade BBB credit rating from S&P

Marex Spectron launches Marex Financial Products structured note business

Global commodities broker Marex Spectron has announced that it has received a group credit profile rating from S&P Global of ‘bbb’.

This credit assessment reflects S&P’s view of Marex Spectron’s strong market position in Metals, Agricultural and Energy with solid capitalization, robust liquidity and limited risk appetite, according to the company. The stable outlook follows S&P’s expectation that Marex Spectron will retain its position as leading global commodities broker, strong profitability, and conservative risk appetite.

The company said that S&P considers the group’s capital and low risk appetite to be key strengths. Both capital and risk positions are assessed as strong. Furthermore, S&P recognizes group’s low risk tolerance, excellent record of avoiding losses and effective risk management.

S&P considers Marex Spectron’s funding and liquidity to be sound. The group expanded its committed working capital facility to $125 million with five banks. The firm also has a $10 million receivables facility with another relationship bank. There is no material funding concentration. In S&P’s view, the group has excess liquidity capacity to meet potential stressed liquidity needs for more than 12 months.

In line with its standard approach, S&P assigns a one notch lower rating to the nonoperating holding company Marex Spectron Group Ltd. than the group credit assessment overall.

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