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
- GreenTech holds grand opening of neighborhood electric vehicle plant
- NEW IN MADISON COUNTY — Mississippi Bio-Medical Business Collaboratory to be introduced Friday
- Turner Grain’s transition will help consolidate lawsuits alleging breach of contract
- Granddaughter of Barq's Root Beer founder dies at 90
- Mississippi Film Studios signs contract with New Orleans company
- Alcorn president launches new customer service task force
- David Duval, former British Open winner, joins Sanderson Farms field
- MDOT cutting more than 40 jobs in Right-of-Way Division
- Mars Food expanding Delta plant; investing $31M and adding jobs
- Board authorizes sale of company that owns Silver Slipper Casino