S&P lowers Arrowhead

Standard & Poor's said it lowered its counterparty credit rating on Arrowhead General Insurance Agency Inc. to B- from B.

The outlook is negative.

This rating action reflects S&P's view that the company is unable to sustain the financial-performance goals that were established when we initially assigned the ratings in 2006.

These metrics include sustained adjusted EBITDA fixed-charge coverage of 2.4x, annual net income of about $10 million and the maintenance of larger bank loan covenant cushions relative to actual recent experience, the agency said.

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