Fitch Downgrades MF Global's LT and ST IDR to 'D'

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NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has downgraded the long-term and short-term Issuer Default Ratings of MF Global Holdings Ltd. (MF) to 'D' from 'BB+' and 'B', respectively. The senior unsecured debt and the preferred stock ratings are downgraded to 'C' from 'BB+' and 'B+', respectively. At the same time, Fitch has removed all ratings from Rating Watch Negative where they were originally placed on Oct. 27, 2011. A complete list of rating actions follows at the end of this release.

The rating actions follow today's announcement that MF and its subsidiary, MF Global Finance USA Inc., have filed for Chapter 11 Bankruptcy protection. Approximately $2.2 billion of senior unsecured debt and $34.4 million of preferred stock are affected by today's rating actions.

Given current uncertainty and the fluid situation surrounding MF's filing, Recovery Ratings (RRs) are not presently assigned. Fitch expects to complete an assessment of RRs on MF's outstanding debt, and incorporate that review into future rating actions.

MF Global Holdings Ltd. is a futures and options broker with subsidiaries in major financial hubs. Its main subsidiaries are registered futures commissions merchants and broker/dealers. MF is regulated as a member of commodities, futures, and securities exchanges in the U.S., Europe and the Asia-Pacific region.

Fitch has downgraded the following ratings for MF Global Holdings Ltd.:
--Long-term IDR downgraded to 'D' from 'BB+'
--Short-term IDR downgraded to 'D' from 'B'
--Senior debt downgraded to 'C' from 'BB+';
--Preferred stock downgraded to 'C' from 'B+'

All ratings are removed from Rating Watch Negative

Additional information is available at www.fitchratings.com. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--'Global Financial Institutions Criteria' (Aug. 16, 2011);
--'Securities Firms Criteria' (Aug. 16, 2011).
--'Recovery Ratings for Financial Institutions' (Aug. 16, 2011).

Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=649171
Securities Firms Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=649173
Recovery Ratings for Financial Institutions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648615

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