Moody's may downgrade Affirmative Insurance

Moody's Investors Service said it placed the B1 long-term issuer rating and senior secured bank credit facility of Affirmative Insurance Holdings, Inc. on review for possible downgrade.

The agency said the review will include an evaluation of the cash flows available to the holding company to support its obligations, the company's prospective profitability including the impact of broader economic conditions on its business profile and the company's ongoing financial flexibility given tight loan covenants.

Moody's noted that the insurance operations are in a negative unassigned surplus position and are not able to dividend funds to the parent without regulatory approval.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.