Fitch Ratings has downgraded the insurer financial strength (IFS) ratings of R.V.I. Guaranty Co., Ltd. and its insurance subsidiaries, R.V.I. America Insurance Co. and R.V.I. National Insurance Co. (collectively RVI) to ‘A’ from ‘A+’. The rating outlook is stable. Fitch said the rating action “primarily reflects the challenging conditions in the residual value insurance market that have resulted in reduced overall premium volume in recent years and influenced the company’s decision late in 2006 to stop writing business in the commercial real estate segment, after having been in the business since 1998.”
Fitch Ratings has affirmed the Issuer Default Rating (IDR), senior debt, preferred stock, and insurer financial strength (IFS) ratings of Conseco Inc. and its subsidiaries. At the same time, however, Fitch revised its outlook on the ratings to negative. “The rating action affects approximately $1.2 billion in outstanding debt,” said the bulletin (See also similar rating actions by S&P and A.M. Best – IJ web site Aug. 8).