|
|
Article: Fitch Downgrades CIFG's Ratings for Europe and America.
- Article from:
- Mortgage Line
- Article date:
- July 10, 2008
- Author:
CopyrightCOPYRIGHT 2008 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
NEW YORK -- The London office of Fitch Ratings here has downgraded the insurer financial strength ratings of CIFG Guaranty and its affiliates CIFG Assurance North America Inc. and CIFG Europe from A- to CCC.
"The downgrade is based, in part, on recent conversations with CIFG's management, in which the company has indicated it could be at greater risk of falling below regulatory minimum capital requirements, if the company's loss provisions increase in future periods which could trigger an insolvency proceeding by regulators," Fitch said.
"If this were to occur, CIFG's entire $57 billion credit default swap portfolio, which is the primary form of ...