Ratings Recap: Radian, Praetorian

September 6, 2007

Fitch Ratings has downgraded the long-term debt ratings of the Radian Group Inc. to ‘A-‘ from ‘A’ and the insurer financial strength (IFS) ratings of all Radian’s mortgage insurance subsidiaries to ‘AA-‘ from ‘AA’. Fitch also assigned a negative outlook to Radian and its mortgage insurance subsidiaries. In addition Fitch downgraded the IFS ratings for Radian Asset Assurance Inc. and subsidiary Radian Asset Assurance Ltd. (collectively Radian Asset) to ‘A+’ from ‘AA’, as well as all obligations insured by Radian Asset, revised the Rating Watch on Radian Asset (originally placed on July 31, 2007) to evolving from negative. The rating action follows the announcement that merger talks between the Radian Group and MGIC Investment Corp. have been terminated.

A.M. Best Co. has affirmed the financial strength ratings (FSR) of “A-” (Excellent) and the issuer credit ratings (ICR) of “a-” of Praetorian Financial Group, of Wilmington Del. and its members. Best also removed the ratings from from under review with
developing implications and assigned a stable outlook. “These rating actions follow the May 31, 2007 announcement that QBE the Americas has completed the planned acquisitions of Praetorian Financial Group, Inc. and QBE Regional Insurance Group (formerly Winterthur U.S. Group),” said Best. “The ratings for QBE Regional Insurance Group were upgraded and assigned a stable outlook on June 6, 2007, while the ratings for Praetorian remained under review with developing implications pending finalization of Praetorian Inc.’s capital structure and inter-company reinsurance arrangements.”

Source: Fitch, A.M. Best

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