Fitch Cuts MF Global Credit Rating to Junk After Shares Tumble
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Fitch Ratings cut the credit ratings of MF Global Holdings Ltd. to BB+ from BBB after the futures broker lost half its market value this week.
On Oct. 24, Moody’s Investors Service cut the New York-based company’s ratings to Baa3 from Baa2, one level above junk status, citing its holdings of European sovereign debt and inability to hit earnings targets. This week, the firm reported its biggest quarterly loss ever, shares plummeted 54 percent and the firm’s 6.25 percent bonds issued in August fell into distressed levels.