Fitch sinks Jefferies rating outlook
Fitch Ratings Ltd. has lowered its rating outlook on Jefferies Group Inc. to negative, from stable.
Fitch Ratings Ltd. has lowered its rating outlook on Jefferies Group Inc. to negative, from stable, citing the increased leverage the New York-based investment bank took on at the end of last year.
New York-based Fitch Ratings said Jefferies has sufficient liquidity but is expecting the bank to have weaker earnings in 2008 resulting from fewer investment-banking deals, and reduced sales and trading revenues.
Fitch is satisfied with steps Jefferies has taken since the end of last year to enhance its cash position, which has included significantly reducing its proprietary trading activities and scaling back its hedge-fund-seeding program.
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