The Baa3 senior debt ratings of Fidelity National Financial Inc. have been placed on review for possible downgrade by Moody's Investors Service following FNF's announcement that it intends to create a publicly traded, majority-owned title insurance holding company.The restructuring calls for borrowing an additional $500 million under a new bank credit facility at the new holding company, which would subordinate the creditors of the ultimate holding company, the rating agency said. Moody's also affirmed the insurance financial strength ratings of FNF's primary insurance operating subsidiaries at A3, but the rating outlook was changed to negative because of concern that FNF may increase its use of financial leverage. Moody's also affirmed the ratings (Ba3 senior) of FNF's 75%-owned subsidiary, Fidelity National Information Services. Moody's said several factors point toward further strain on the company's leverage profile, including FNF's "history of aggressive use of debt, a demonstration of management's willingness to maximize shareholder value to the potential detriment of creditors, and management's indication that it is considering large-scale acquisitions that could be financed in part through debt."
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
6h ago -
Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
9h ago -
While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
11h ago -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
11h ago -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
July 11 -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
July 11