Over the past few years, HRT's expansion of its trading business has grown its balance sheet and brought its reliance on short-term financing in line with that of many of its high-frequency trading peers. Although HRT's profitability was down substantially in 2022 compared with 2021 because of trading losses in the second quarter of the year, it has rebounded since--while the firm maintained solid capitalization and supportive liquidity--and the overall credit profile remains in line with 'BB-' rated peers. As a result, we affirmed our 'BB-' issuer credit and senior secured debt ratings on HRT. The stable outlook is based on our expectation that HRT will maintain profitability, a risk-adjusted capital ratio between 9.5%-10.5%, and adequate liquidity as it continues
