Fitch affirms MF Global's issuer default ratings

Fitch rates MF Global's long-term issuer default rating at investment-grade "BBB+" and it short-term issuer default rating at "F2."

The ratings affirmation takes into account recent steps MF Global has taken to improve internal control and risk management deficiencies and its efforts to reduce regulatory capital, counterparty and liquidity needs, Fitch said in a statement.

"Risks have consciously been reduced through the reduction in customer financing and tightening of terms including higher client margin and lower settlement days," Fitch said in a statement.

Fitch initially placed MF Global on a negative ratings watch in February after the company disclosed unauthorized trades by one of its employees cost the company $141.5 million.

On Tuesday evening, MF Global said it will raise $300 million through the offering of special classes of stock to help pay off a bridge loan due in December. Fitch said the terms of the issuance also provide affirmation of MF Global's current ratings.

MF Global also said Tuesday that narrowing spreads will negatively affect net interest income and pretax margins, hampering fiscal first-quarter earnings. That sent shares of the company tumbling.

Shares of MF Global plummeted Wednesday afternoon, losing $4.81, or 36.3 percent, to $8.45. The stock has ranged from $3.64 to $32.20 over the past year.