Moody's affirms MF Global

Moody's Investors Service said it affirmed the Baa2 long-term issuer rating of MF Global Holdings Ltd.

Its outlook remains negative, reflecting execution risk of its ambitious business strategy and its weak credit metrics, the agency said.

Over the next four to six quarters, Moody's said it will evaluate whether MF Global can re-engineer the franchise to generate annual pre-tax earnings in the $200 million to $300 million range and keep balance sheet leverage in the low 20x range.

MF Global's track record has been good, punctuated by adding new revenue streams, a lower and more flexible compensation ratio and a balance sheet recapitalization, the agency said.

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