Jump Financial LLC 'BB-' Ratings Affirmed And Removed From CreditWatch Negative; Outlook Negative

Jump Financial LLC's implementation of its enhanced value-at-risk (VaR) framework has so far not materially increased its reported market risk or lowered its expected risk-adjusted capital (RAC) ratio. However, the company is still integrating some final asset classes into its VaR coverage, which while not expected, could increase reported VaR, raising the risk of our risk-adjusted capital ratio falling below the 10% threshold necessary to support the current ratings. We affirmed the 'BB-' issuer credit and issue ratings on Jump and removed them from CreditWatch, where we placed them with negative implications on July 14, 2023. The negative outlook reflects that integrating the remaining trading book into the VaR framework could increase reported market risk and pressure the RAC ratio.

...February 15, 2024 - Jump Financial LLC's implementation of its enhanced value-at-risk (VaR) framework has so far not materially increased its reported market risk or lowered its expected risk-adjusted capital (RAC) ratio. - However, the company is still integrating some final asset classes into its VaR coverage, which while not expected, could increase reported VaR, raising the risk of our risk-adjusted capital ratio falling below the 10% threshold necessary to support the current ratings. - We affirmed the '##-' issuer credit and issue ratings on Jump and removed them from CreditWatch, where we placed them with negative implications on July 14, 2023. - The negative outlook reflects that integrating the remaining trading book into the VaR framework could increase reported market risk and pressure the RAC ratio. TORONTO (S&P Global Ratings) Feb. 15, 2024--S&P Global Ratings said it affirmed its '##-' issuer credit and senior secured debt ratings on Jump Financial LLC and removed them from...

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