Chandler USA Lowered

The issuer credit and senior unsecured debt ratings on Chandler USA Inc. were lowered from “BBB” to “BB” by S&P. Concurrently, the counterparty credit ratings and FSR on Chandler USA’s subsidiary, National American Insurance Co. (NAICO) were lowered from “A” to “BBB.” The rating action is based on the group’s increased debt and operation leverage; reduced financial flexibility; and uncertainties with regard to future business strategies. These negative factors were offset by the group’s good business position in the traditional small commercial and political subdivision property/casualty market, primarily in Oklahoma, but also in Texas. The outlook on the companies was revised from negative to stable.