Old Republic Intl, insurance units counterparty ratings on negative watch - S&P |
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Tue, 30 Oct 2007 06:53
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MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said it has placed its 'AA' counterparty credit and financial strength ratings on the insurance subsidiaries of Old Republic International Corp (ORI) on CreditWatch with negative implications.S&P said it has also placed its 'A+' counterparty credit rating and long-term debt ratings on ORI on CreditWatch with negative implications.It further said the ratings actions follow ORI's announcement Thursday that the incurred loss ratio for its mortgage insurance operations, Republic Mortgage Insurance Co and Republic Mortgage Insurance Co of NC (RMIC), was 162 pct in the third quarter of 2007.Although RMIC has a relatively conservative insured loan portfolio, recent growth has created a material exposure to loans originated in 2006 and 2007.The primary concern is RMIC's operating performance in the next two years, the ratings agency said, adding that it believes RMIC will report underwriting losses in 2008.The resolution of the CreditWatch will be an affirmation or a one-notch downgrade, the ratings agency said.TFN.newsdesk@thomson.comran/ssh/pmiCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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PMI Group's 'AA' counterparty credit ratings placed on negative watch - S&P 