MUMBAI (Thomson Financial) - Fitch Ratings downgraded Old Republic
International Corp. (ORI) and signalled a further possible downgrade.
It cut ORI's issuer default rating and commercial paper rating to 'A+' and
F1 respectively. The insurer financial strength ratings of the property casualty
insurance operating group and Republic Mortgage Insurance Co. (RMIC) were
downgraded to 'AA-' from 'AA', while the IFS ratings of the title insurance
operating group were downgraded to 'A+' from 'AA-'. All ratings were placed on
rating watch negative.
"The downgrade reflects a substantial capital shortfall at RMIC relative to
the guidelines for the 'AA' rating category ... and increased concerns over the
performance of ORI's consumer credit indemnity (CCI) program," the agency said.
The negative watch reflects concern about the mortgage industry downcycle
which adversely affects ORI's mortgage insurance and title insurance businesses
as well as the CCI product.
TFN.newsdesk@thomson.com
jro
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