Fitch Affirms Old Republic Ratings At BBB+

CHICAGO (AP) — Fitch Ratings on Thursday affirmed its ratings of insurance company Old Republic International Corp. and its subsidiaries.

Fitch kept its issuer default rating at "BBB+," its insurer financial strength rating of the property/casualty and title insurance groups at "A+" and kept a "BBB" rating on the $316 million of convertible unsecured senior notes.

The ratings are investment grade. The rating outlook is negative.

Fitch said the affirmation reflects modest financial leverage, a conservative investment portfolio and a profitable core property/casualty business, after adjusting for Old Republic's consumer credit indemnity product.

The consumer credit indemnity product provides credit protection against pools of prime second-lien mortgages.

"The current economic environment and specifically the troubled real estate market has adversely affected all three business segments at ORI, namely mortgage guaranty, title insurance and property/casualty through its (consumer credit indemnity) product," Fitch analysts said, referring to the Chicago-based company by its New York Stock Exchange ticker. "Consequently, earnings have been challenged as the current downturn has damaged the historic diversification benefits enjoyed by ORI."