Fitch Eyes LandAmerica

The ratings of LandAmerica Financial Group and its title insurance subsidiaries have been placed on Rating Watch Negative by Fitch Ratings.The action came in the wake of LandAmerica's recent announcement that it plans to acquire Capital Title Group Inc., and Fitch said it reflects concerns about the company's "ability to profitably execute its acquisition strategy." Cited as concerns by the rating agency are the size of the purchase price relative to reported book value; a significant increase in intangibles (and the company's history of writedowns of intangibles); and the harm the acquisition may do to LandAmerica's "already weakening balance sheet fundamentals." LandAmerica's insurer financial strength, and that of seven title insurance subsidiaries, is rated A by Fitch. The rating agency can be found online at http://www.fitchratings.com.