S&P affirms MF Global

Standard & Poor's said affirmed its BBB long-term counterparty credit rating on MF Global Ltd.

All ratings were removed from CreditWatch negative, where they were placed Feb. 29, and the outlook is stable.

The agency said the affirmation results from the company's successful implementation of its capital plan, which addressed the short-term maturity of its bridge loan facility. Specifically, the company issued $150 million in convertible senior unsecured notes and $300 million in perpetual convertible preference shares, extended $300 million of its bridge loan facility until July 2010 and plans to upstream at least $300 million in excess capital from its regulated broker dealer subsidiaries in early fiscal 2009, also to be used toward the repayment of the bridge loan facility.

The ratings on MF Global reflect its strong franchise position in the rapidly growing derivatives market, balanced against significant financial leverage, dependence on market volumes and modest credit risk, S&P said.

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