KBRA Assigns Rating to $500 Million Senior Unsecured Notes Issued by Cantor Fitzgerald, L.P.
KBRA assigns a rating of BBB with a Stable Outlook to the $500 million senior unsecured notes issued by Cantor
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KBRA assigns a rating of BBB with a Stable Outlook to the $500 million senior unsecured notes issued by Cantor Fitzgerald, L.P. (“Cantor”, “CFLP”, or “the firm”) with a final maturity date of October 15, 2029. The proceeds will be used to refinance existing senior unsecured debt of $350 million that was scheduled to mature on April 14, 2027 and for general corporate purposes.
Domiciled in New York, NY, Cantor is a privately held capital markets, investment banking, and asset management firm that wholly owns two SEC-registered broker-dealers and maintains controlling stakes in a publicly traded wholesale inter-dealer brokerage company and a CRE brokerage, capital markets and client services company. Principal subsidiaries include Cantor Fitzgerald & Co, CF Secured, LLC, BGC Group, Inc. (“BGC”), Newmark Group, Inc. (“NMRK”), and Cantor Fitzgerald Asset Management.
Key Credit Considerations
The ratings are underpinned by management’s long record of producing relatively steady operating results, adapting to business and market evolution and opportunity, emphasizing risk management, and maintaining consistent financial leverage and liquidity management practices. The ratings are further reinforced by the financial flexibility that comes from Cantor’s flow securities trading operations and agency inter-dealer and CRE brokerage businesses, together with mostly overnight repo lending that is supported by disciplined collateral margin requirements.
Consolidated profitability in 2025 was very strong, and this performance continues through 2Q26, driven by several factors, including the favorable market backdrop and demand for Cantor’s products and services, including at its core broker-dealer businesses but also at BGC and NMRK. Financial leverage continues to be maintained within a relatively narrow range, reaching a cyclical low in 2025 due to the strong earnings performance and net capital raising efforts at CFLP (consolidated). KBRA continues to anticipate that adjusted financial leverage will be managed in the 5x range on a through-the-cycle basis. Liquidity continues to benefit from the nature of the agency-like business activities, balance sheet flexibility, and ample unsecured, committed borrowing capacity.
Rating Sensitivities
Cantor’s ratings are well positioned at the current levels, reflective of the current strong financial performance in 2025. Conversely, although unlikely, a change in the firm’s stringent enterprise risk management policies and practices or liquidity management would pressure the ratings. A change in the revenue profile, which would be most likely to come from a secular dislocation in either the wholesale brokerage or CRE brokerage and financing business, would also cause the ratings to be evaluated.
To access ratings and relevant documents, click here.
Methodology
Disclosures
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.
Doc ID: 1017460
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