Fitch affirms First American

Fitch Ratings said it has affirmed the A- insurer financial strength of the First American Insurance Cos. with a negative outlook.

Additionally, Fitch said it has downgraded all holding company obligations one notch as follows:

• First American Corp.'s issuer default rating to BBB- from BBB; and senior unsecured debt to BB+ from BBB-; as well as

• First American Capital Trust's trust preferred securities to BB from BB+.

All ratings remain on a negative outlook.

The expanded notching of the holding company ratings reflects a heightened scrutiny of the company's 47% debt to tangible capital ratio as of June 30 given the current stressful environment, the agency said.

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