Fitch places Jefferies' BBB L-T IDR on Rating Watch Negative Fitch Ratings has placed Jefferies Group's (JEF) long-term Issuer Default Rating and short-term IDR on Rating Watch Negative. Today's action follows Jefferies' announcement that it has entered into a definitive agreement to merge with Leucadia National Corp. (LUK). Fitch expects to resolve the Rating Watch Negative once the merger is completed in the first quarter of 2013. Assuming the transaction is completed, and absent material credit developments in the interim, the outcome is expected to result in a one-notch downgrade of Jefferies' long-term IDR to 'BBB-' and short-term IDR to 'F3'. The expected one-notch downgrade reflects Fitch's view that after the proposed merger, Jefferies would become much more exposed to the market risk inherent in the other subsidiaries' investments at Leucadia.