Jefferies Finance LLC (JFIN) has a narrow business model, rapid growth plans, and liquidity and credit risk in its originate-to-syndicate strategy. JFIN's track record of relatively modest credit losses, and the funding, credit, and operational support its two equity owners provide are positive ratings factors. We also consider JFIN moderately strategically important to Jefferies Group LLC (Jefferies), one of its owners. We are assigning a 'BB-' issuer credit rating on the company and a 'B+' issue-level rating on its proposed senior unsecured notes. The outlook on the ratings is stable, reflecting our expectation that the company will expand quickly while carefully managing its liquidity risk without greatly easing its underwriting standards. On March 18, 2013, Standard&Poor's Ratings Services
