S&P: Jefferies unaffected

Standard & Poor's said that Jefferies Group Inc.'s (BBB+/stable) announcement that it expects to record a $24 million loss in the fourth quarter does not affect its rating or outlook on the company.

The agency said that Jefferies' expected fourth-quarter results are negatively affected primarily by weak results in its high-yield and asset-management businesses, as well as losses in two principal trading efforts.

S&P noted that it is concerned by this expected loss, which demonstrates the increase in its risk profile during the past few years.

The company's overall financial condition currently remains acceptable for the rating, S&P said, adding that its ratings on Jefferies continue to be supported by the company's strong capital adequacy and liquidity and its successful diversification into various businesses in recent years.

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