Fitch downgrades HCC to A

Fitch Ratings said it downgraded HCC Insurance Holdings, Inc.'s issuer default rating to A from A+ and the insurer financial strength ratings for its operating subsidiaries to AA- from AA with a stable outlook; all ratings were previously on Rating Watch Negative.

Fitch said the action follows the Oct. 27 announcement that Tokio Marine Holdings, Inc. (A+ insurer financial strength rating) completed the acquisition of HCC. The downgrade reflects ownership by a lower-rated parent.

The action aligns HCC's operating company issuer default rating with that of its new parent's core operating companies, but allows the insurer financial strength rating to be one notch above those same core operating companies.

The Tokio Marine operating company insurer financial strength rating of A+ is constrained by the Japanese operations' exposure to country risks in Japan (Fitch local currency sovereign rating of A), which Fitch views as only indirectly affecting U.S.-based HCC.

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