S&P: Refco unaffected

Standard & Poor's said that the IPO of Refco Inc. will not affect the ratings or outlook of Refco Group Ltd. LLC (BB-/stable/--).

Refco Inc., the parent of Refco, completed its IPO of 26.5 million shares of common stock at $22.00 per share. A portion of the net proceeds raised will be used to pay down $210 million of the $600 million of senior subordinated notes issued by Refco.

S&P said that although this is a positive step for Refco to strengthen its balance sheet, tangible equity will continue to be negative at Refco after the consummation of these transactions. Refco's credit profile still remains constrained by its weak tangible capital position.

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