TMX Group Receives Stable Credit Rating Trend from Morningstar DBRS
TMX Group Limited, a leading operator of Canadian markets and clearinghouses, announced on March 4, 2025, that DBRS Limited (Morningstar DBRS) has revised the trend on all credit ratings of the company to Stable from Negative. This positive development comes as a result of the significant progress TMX Group has made in deleveraging following the acquisition of VettaFi Holdings LLC in January 2024.
Background on the TMX Group and the Acquisition
TMX Group is a prominent player in the Canadian financial industry, operating various markets and clearinghouses, including the Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange, and Montreal Exchange. In January 2024, TMX Group completed the acquisition of VettaFi Holdings LLC, a U.S. financial technology firm specializing in exchange-traded funds (ETFs). The deal significantly expanded TMX Group’s presence in the U.S. financial market.
Rating Revision and Confirmation
Morningstar DBRS, a leading independent provider of credit ratings, ratings-based research, and analytics, reviewed TMX Group’s financial position post-acquisition and determined that the company has made sufficient progress in deleveraging. As a result, the trend on all TMX Group credit ratings was revised to Stable from Negative. The Long-Term Issuer Rating and the Senior Unsecured Debt credit rating of TMX Group were confirmed at AA (low), while its Commercial Paper (CP) credit rating was affirmed at R-1 (middle).
Impact on TMX Group
The Stable credit rating trend is a positive sign for TMX Group, as it indicates that the company’s financial situation is improving and that the risks of a downgrade have been mitigated. This development is expected to boost investor confidence in TMX Group’s financial stability, potentially leading to increased demand for its securities and a stronger market position.
Impact on Individuals
For individual investors, the Stable credit rating trend on TMX Group may lead to increased interest in investing in the company’s securities. Additionally, the acquisition of VettaFi Holdings LLC has expanded TMX Group’s offerings, potentially providing more investment opportunities for retail investors through the Toronto Stock Exchange and other platforms. However, it is essential to remember that investing always comes with risks, and thorough research and analysis should be conducted before making any investment decisions.
Impact on the World
The Stable credit rating trend on TMX Group is a positive sign for the Canadian financial industry as a whole, as it indicates that one of its leading players is making progress in managing its financial risks. Furthermore, TMX Group’s expansion into the U.S. market through the acquisition of VettaFi Holdings LLC could potentially lead to increased competition and innovation in the financial technology sector, benefiting consumers and investors worldwide.
Conclusion
The revised credit rating trend on TMX Group from Morningstar DBRS, with all ratings confirmed at AA (low) for Long-Term Issuer Rating and Senior Unsecured Debt, and R-1 (middle) for Commercial Paper, is a positive development for the company and its stakeholders. The Stable trend indicates that TMX Group’s financial situation is improving, and the progress made in deleveraging following the acquisition of VettaFi Holdings LLC has mitigated risks of a downgrade. The impact of this rating revision extends beyond TMX Group, potentially boosting investor confidence in the Canadian financial industry and driving competition and innovation in the financial technology sector. As always, it is crucial for investors to conduct thorough research and analysis before making any investment decisions.
- TMX Group Limited announced that DBRS Limited (Morningstar DBRS) has revised the trend on all credit ratings of the company to Stable from Negative
- The positive development comes as a result of the significant progress TMX Group has made in deleveraging following the acquisition of VettaFi Holdings LLC in January 2024
- The Long-Term Issuer Rating and the Senior Unsecured Debt credit rating of TMX Group were confirmed at AA (low), while its Commercial Paper (CP) credit rating was affirmed at R-1 (middle)
- The Stable credit rating trend is expected to boost investor confidence in TMX Group’s financial stability
- The impact of this rating revision extends beyond TMX Group, potentially boosting investor confidence in the Canadian financial industry and driving competition and innovation in the financial technology sector
