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S&P places Bats Global rating on CreditWatch following CBOE deal

S&P Global Ratings placed 's BB- issuercredit rating on CreditWatch with positive implications.

The rating agency also assigned its BBB+ long-term issuercredit rating to CBOE HoldingsInc. with a stable outlook.

The agency's actions come after the that CBOE has agreed toacquire Bats Global in a $3.2 billion cash-and-stock deal.

S&P believes the deal could strengthen Bats Global'sfinancial risk profile by lowering its outstanding debt and supporting cashflow generation by cutting interest expenses.

In addition, the agency views the deal as a positive forCBOE's business risk profile because it believes it would be a significantaddition to CBOE's scale and diversification, without any major overlaps apartfrom single-stock U.S. options.

The agency said its rating on Bats Global takes into accountits solid market position in U.S. and European equities, globally diversifiedcustomer mix and scalable technology platforms.

S&P's rating on CBOE takes into account its view thatthe company has a "leading position" among equity options exchangeoperators in the U.S. It also takes into account its capacity to generatestrong cash flow from operations and its strong financial risk profile.

The agency's stable outlook on CBOE's rating represents itsbelief that CBOE's creditworthiness would not deteriorate if the Bats Globalacquisition materializes on the announced terms.

S&P will resolve the CreditWatch status on Bats Global'srating upon the completion of the deal.

S&P Global Ratingsand S&P Global Market Intelligence are owned by S&P Global Inc.