Fitch upgrades rating on Old Republic, subsidiaries to ‘positive’
by MBJ Staff
Published: May 28,2012
MADISON — Fitch Ratings has placed the ratings of Old Republic International Corporation’s (ORI) and its insurance company subsidiaries on rating watch positive. The ratings were previously on rating watch negative, where they had been placed Jan. 25, 2012.
The rating includes Mississippi Valley Title Insurance Company of Madison, an ORI subsidiary.
Fitch wrote in part: “The rating watch reflects ORI’s recently announced plan to spin off of its wholly owned subsidiary, Republic Financial Indemnity Group Inc. (RFIG). RFIG combines ORI’s mortgage insurance and consumer credit indemnity (CCI) lines. A successful spin-off would mitigate Fitch’s concern regarding a potential covenant breach under ORI’s debt obligations and eliminate the cash drain related to RFIG.
“Fitch anticipates that ORI’s debt rating will be upgraded to investment grade assuming the spin-off occurs as specified, and that subsidiary Insurer Financial Strength (IFS) ratings will likely be upgraded by one notch.
“Fitch plans to review ORI’s ratings following the completion of this transaction, which is expected to take place in mid-July.”
To sign up for Mississippi Business Daily Updates, click here.
FOLLOW THE MBJ ON TWITTERMy Tweets
Top Posts & Pages
- DeSoto County Supervisor Lee dies in ATV accident on his birthday
- Kemper County plant will cost at least another $496M to complete
- Molpus closes Fund after more than $662M in commitments
- State Sen. Gandy hospitalized in South America
- Cochran calls on EPA for review of Yazoo Backwater Project
- Camgian launches Internet of Things product called Egburt
- Number of requests for general election absentee ballots roughly same as primary
- Former Mississippi First Lady Carroll Waller dies at 87
- After string of losses, O'Hara sees himself as Senate 'protest vote'