Fitch rates Leucadia BB+

Fitch Ratings said it assigned a BB+ issuer default rating to Leucadia National Corp. and revised the outlook to stable from negative. The agency also affirmed Leucadia's BB+ senior debt rating, BB senior subordinated debt rating and BB- junior subordinated debt rating.

The agency said its affirmations and revised outlook reflect improvement in Leucadia's financial performance, the company's substantial liquidity position and the sale of its largest investment, Wiltel Communications Group LLC, on Dec. 23 for a significant gain, which included retaining the right to receive cash payments totaling roughly $200 million from SBC - Wiltel's largest customer.

Fitch also recognized management's demonstrated ability to make sound investment decisions and consistency in achieving realized gains within an investment portfolio that is weighted heavily with undervalued assets.

Consolidated debt to tangible equity equaled 0.45x at Sept. 30 and has averaged 0.55x over the past five years, the agency said. The company's readily available cash, cash equivalents and marketable securities totaled $2.36 billion and outstanding debt was $1.57 billion.

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