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Article: Fitch: First American's Transaction Does Not Affect Ratings.
- Article from:
- Business Wire
- Article date:
- June 29, 2009
CopyrightCOPYRIGHT 2009 Business Wire. 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)
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CHICAGO -- Fitch Ratings took no rating action on First American Corporation's (FAF) ratings following FAF's announcement to purchase the 26% minority interest in First Advantage Corporation (FADV) in an all stock transaction. This transaction is expected to close before year end.
Fitch views this transaction as ratings neutral because this is an all stock transaction. Structuring this transaction as an all equity deal will have a modest impact on financial leverage and no impact on earnings based on interest coverage. However, Fitch recognizes that all acquisitions have some level of risk embedded in them, particularly in areas of purchase price and inability to ...