Fitch puts MF on watch

Fitch Ratings said it placed on Rating Watch negative MF Global's issuer default rating at BBB+, senior unsecured ratings at BBB+ and short-term issuer rating at F2.

The watch follows MF Global's announcement that it would absorb a $141.5 million trading loss, according to Fitch, resulting from failure of its systems to curtail unauthorized trading activity by one of its U.S. registered representatives.

The agency said it believes the company has sufficient liquidity and capital to address its current operating and financial risks. The loss questions, however, the robustness of risk measurement systems and represents a substantial portion of net income level, Fitch said.

Ratings recognize the company's leading market position as an independent futures and options broker operating typically as an exclusive broker, the agency said.

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