Fitch puts Old Republic on positive watch

Fitch Ratings said it placed on Rating Watch positive Old Republic International Corp.'s issuer default rating of BB, along with the BB- rating on its $550 million 3.75% senior notes due March 15, 2018.

The ratings on the company's insurance company subsidiaries also were placed on Rating Watch positive.

The ratings were previously on Rating Watch negative, where they were placed in January.

The Rating Watch reflects the company's recently announced plan to spin off of its wholly owned subsidiary, Republic Financial Indemnity Group, Inc., the agency said.

A successful spin-off would mitigate concerns regarding a potential covenant breach under the company's debt obligations and eliminate the cash drain related to Republic Financial, Fitch said.

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