Standard & Poor’S Raises Ratings For First American
December 13, 2005
SANTA ANA, Calif., -- Standard & Poor’s Ratings Services has raised the ratings for First American ts counterparty credit and senior debt ratings on First American to ‘BBB+’ from ‘BBB.’ Standard & Poor’s has also raised its counterparty credit and financial strength ratings on First American Title Insurance Company, First American’s largest subsidiary, to ‘A’ from ‘A-.’ Standard & Poor’s rates the outlook on both companies as ‘stable.’
“The ratings are based on First American Title Insurance Company’s strong and entrenched competitive position as the second-largest domestic title insurer, strong operating performance due to increased efficiencies, and a complementary array of real estate related products,” said Standard & Poor’s credit analyst Donovan Fraser in a Nov. 30, 2005 announcement.
The rating on The First American Corporation reflects the financial strength of its title subsidiary and the company’s access to unrestricted dividends from its nontitle operations.
“First American has worked diligently to implement cost reduction programs while further building our comprehensive menu of real estate-related services alongside other countercyclical businesses,” said Parker S. Kennedy, chairman and chief executive officer of The First American Corporation. “We respect the ratings guidance offered by Standard and Poor’s and are pleased with their recognition of our efforts to improve our financial strength and further unlock shareholder value. First American is better positioned than at any point in our history to weather interest rate fluctuations, and we trust that our continuing efforts to differentiate our business will lead to continued, positive ratings from Standard & Poor’s.”
Source: The First American Corporation