A.M. Best Downgrades Ratings of First American Corporation Property Casualty Companies
OLDWICK, N.J. April 24 (BestWire) — A.M. Best Co. has downgraded the financial strength rating (FSR) to A- (Excellent) from A (Excellent) and issuer credit ratings (ICR) to “a-” from “a” of First American Corporation Property Casualty Companies (First American P&C Group) (Santa Ana, CA) and its member companies, First American Property & Casualty Insurance Company and First American Specialty Insurance Company. The outlook for all ratings is negative.
The above rating actions reflect the negative implications of the recent downgrading of the ICR and debt ratings of First American P&C Group’s parent holding company, First American Corporation (First American) (Santa Ana, CA) [NYSE: FAF], whose financial flexibility has been reduced. (Please see April 22, 2008 press release on First American Corporation.)
The downgrades have resulted in reduced access to capital and dividend requirements for First American P&C Group. On a stand-alone basis, First American P&C Group continues to exhibit favorable operating performance due in part to strong underwriting discipline. The outlook reflects the continuing pressures on First American P&C Group’s capitalization as a result of the reduced financial flexibility of First American.
For Best’s Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings. BN-NJ-04-24-2008 1442 ET #
Published on April 24, 2008
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