Fitch Takes FNF Off Watch

Fitch Ratings, Chicago, has removed Fidelity National Financial Inc., Jacksonville, Fla., from its Rating Watch Negative status, and placed the company and its subsidiaries on a Stable Rating Outlook.The reason for the change was based on the company's plans to capitalize the spin-off of its title insurance business. During the third quarter, FNF will spin-off Fidelity National Title Group, maintaining an 82.5% interest while distributing the rest to its stockholders. The plans include FNT's assumption of $150 million in bank debt and $500 million in intercompany debt. After the spin-off, FNF will effectively have no debt and approximately $600 million in cash. Fitch said, "Consequently, future rating actions could potentially be influenced by acquisitions at FNF and added leverage."