Standard & Poor’s Ratings Services revised the outlook to negative from stable on Florida Hurricane Catastrophe Fund (AA-), Citizens Property Insurance Corp. (A+), and Florida Insurance Guaranty Association (preliminary rating ‘A-‘) following the outlook revision on Florida’s ‘AAA’ long-term rating to negative from stable.
“While the ratings on all of these entities are not directly tied to the rating on Florida, the state’s overall credit profile has always been a significant factor for the ratings, in our view,” said Standard & Poor’s credit analyst Robin Prunty.
Standard & Poor’s said it revised its bond rating outlook for the state of Florida to negative due to increasing economic and financial pressures. It also revised its rating outlook on the state’s appropriation debt to negative from stable, and affirmed its ‘AA+’ rating on the debt.
If the rating on the state were lowered, S&P said it could lower the ratings on the governmental entities created to stabilize the residential property insurance market as well.
Source:
Standard & Poor’s
www.standardandpoors.com
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