Moody's confirms Affirmative

Moody's Investors Service said it confirmed the B3 senior secured and long-term issuer ratings of Affirmative Insurance Holdings, Inc.

The outlook is negative.

The confirmation concludes a review for downgrade that began on March 19 when the company announced that it would delay its 2008 10-K filing with the Securities and Exchange Commission to complete its interim goodwill impairment testing, according to the agency.

The confirmation reflects the additional flexibility the company has under its amended loan covenants as well as the absence of an impairment charge related to its substantial goodwill as detailed in its Form 10-K filed on March 31, Moody's said.

Ratings also reflect Affirmative's weak operating results in recent years, its moderate market share of the non-standard personal auto market, the moderate cash flows available from its unregulated subsidiaries and its conservative investment portfolio, the agency said.

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