National Long-term Rating
: To 'BBB+(bra)' Rating
Outlook Stable, from 'BBB(bra)' Rating
2% of Fitch-rated 'AAA' securities maintaining their rating
year over year,' said Mariarosa Verde, Managing Director, Credit Market Research, Fitch Ratings
The following long term issuer rating
was also withdrawn and an IDR was assigned as a result of implementation of the new methodology.
The following rating
action occurred as result of the annual review:
Local Currency; 'BBB-; 'BBB', Rating
The commercial paper and surplus notes ratings
are based on the organization's moderate consolidated financial leverage and strong debt-repayment capabilities.
California (rated 'A') is assigned a Positive Rating
Outlook, reflecting general economic and revenue improvement and progress in reducing its structural imbalances, although the final outcome of the proposed budget could affect rating
Best's Impairment Rate and Rating
Transition Study - 1977 to 2005 demonstrates that impairment rates are inversely related to ratings
--the lower the rating
, the higher the impairment rate; the higher the rating
, the lower the impairment rate.
The implementation of the new ratings
standards is being done concurrently for most insurance sectors globally, and follows the publication of an exposure draft of the noted methodology report on Dec.
The relationship between life insurer's IDRs and existing senior unsecured debt ratings
is primarily dependent on characteristics of the regulatory jurisdictions and environments in which the debt issuing holding companies and subsidiary life insurance companies operate.
domiciled insurance subsidiaries, and is the primary reason for the rating
revision listed below for XL Capital Ltd.
First, the IDRs assigned generally matched the long-term issuer rating
previously assigned to the various rated entities.
But there is a problem: Europe doesn't have a major rating
agency that would take into account the special characteristics of European accounting or the prevailing differences in financial ratios as they evolved in a bank-based financial system.
Most insurers price using inline rating
that is deeply embedded in their policy management systems.
Making effective use of published rating
service reports is the first step.