Fitch Downgrades Fidelity National Financial

CHICAGO (AP) — Fitch Ratings on Tuesday downgraded the issuer default rating on Fidelity National Financial Inc. by two notches and said the ratings outlook was negative as the insurer's debt levels grew higher than its peers.

Fitch lowered the issuer default r0ating to B+ from BB and cut the issuer financial strength rating of Fidelity's title insurance subsidiaries one notch to BBB- from BBB. Former LandAmerica title units were affirmed at BBB-.

The financial strength rating downgrade reflected an "aggressive capital management strategy where the operating leverage of the underwriting subsidiaries has increased to a level beyond peer companies," Fitch said in a statement.

The cut to the issuer default rating reflected the weaker financial strength rating and greater weight given to goodwill at the holding company, Fitch said.

The negative outlook reflects challenges faced by the title insurance industry as house values and the mortgage market remain pressured, it said.