Rating Groups Undergo Changes

The merger of Duff & Phelps Credit Rating Company (DCR) and Fitch IBCA formed Fitch, an international rating agency. On June 1, Fitch changed the name for its insurance company rating from “Claims Paying Ability” to “Insurer Financial Strength” (IFS), then made changes to its IFS rating definitions. Fitch indicated the initial name change was more in keeping with the methodology now in place at Fitch, one that has been utilized for the past several years by both Fitch IBCA and DCR.

In an effort to better serve the credit market’s risk and evaluation needs, Standard and Poor’s (S&P) recently restructured its ratings division. On June 23, 2000, it combined the corporate, public, sovereign and infrastructure finance ratings groups into one entity, to be called Capital Markets Focus until a new name is chosen. It was further announced that ratings for financial institutions and insurance companies would be brought under one roof as the Financial Services Group.