Standard & Poor’s Ratings Services lowered its counterparty credit and financial strength ratings for Miami, Fla-based Granada Insurance Co. (Granada) to “Bbpi” from “BBBpi.”
Granada’s “marginal capitalization, declining operating performance, and high common stock leverage” prompted the ratings actions, according to S&P’s credit analyst Tom Taillon. In addition, the company’s “high geographic and product line concentrations with respect to current capitalization,” affected the ratings.
Granada specializes in writing commercial lines throughout its home state. Product lines include commercial auto liability, commercial auto physical damage, property, general liability, garage liability, inland marine, and liquor liability insurance. Florida currently accounts for all of the company’s revenue. Its products are distributed primarily through independent general agents.
The company began operating in 1987 and is privately owned.
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