BATS takes another swing at an IPO this week, and independent ratings agency Rapid Ratings sees solid contact.
Rapid Ratings, a financial services company that uses a proprietary quantitative system to rate the financial health of corporations and financial institutions, initiated coverage on the stock operator and gave it an Financial Health Rating of 73 — Low Risk — based on its financials from last December’s S-1 filing. For reference, Rapid Ratings was kind enough to share the FHRs of of the other 12 global exchange operators it rates.
Rapid Ratings first caught our eye in the wake of the MF Global bankruptcy, when it became known that, unlike the major ratings agencies, which only downgraded MF in its final two weeks, Rapid Ratings had flagged the broker as a high default risk for nearly two years before its demise. For more on Rapid Ratings, see its MarketsWiki bio HERE.
As we reported in yesterday’s newsletter, BATS second attempt at an IPO looks to be headed for success, and the street wants part of the action in a market hungry for a darling. I heard one rumor yesterday at the FOW Derivatives Asia conference that the BATS IPO was oversubscribed by a factor of 5-1.
Buy me some peanuts and Cracker Jack; it’s opening day and the BATS are hot.