Fitch affirms Man Group

Fitch Ratings said it has affirmed Man Group plc's ratings at long-term A- with a stable outlook.

Fitch said Man Group's $610 million of subordinated debt has been affirmed at BBB+.

The action follows Man Group's announcement that it plans to buy the customer accounts, balances and certain other assets of Refco LLC.

The acquisition of a primarily retail-regulated futures brokerage is complementary to Man's existing futures and options brokerage in Man Financial, Fitch said.

The risk profile of the business Man Group is purchasing is relatively low for operational risk, arising from the reliance on IT infrastructure to process a vast number of transactions. Potential employee misconduct would appear to be the main risk it faces, Fitch said. Liquidity risk could arise in extreme instances of market dislocation, but credit and market risks are generally small, Fitch said.

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