Fitch May Raise Fidelity National Title's Credit Rating After Spinoff
|September 25, 2006|
CHICAGO (AP) -- Fitch Ratings said Wednesday it may raise the credit ratings of title insurer Fidelity National Title Group Inc. because of the flexibility the spinoff of its information services operations will provide to the surviing company.
Jacksonville, Fla.-based Fidelity National Title Group, the holding company for two publicly traded subsidiaries, is spinning off the assets of its information services business, Fidelity National Information Services. Early in the fourth quarter, the parent company will then consolidate into its title insurance subsidiary, Fidelity National Financial.
Fitch said it is reviewing the credit ratings of the title insurance business, pending completion of the transaction. Fitch may raise the credit ratings of the title insurance company without the information services business because of strong financial performance, a top competitive position and less debt following the reorganization.
Fitch rates most of Fidelity National's debt issues "BBB-", the lowest rating that still qualifies as investment grade.
Shares of Fidelity National rose 35 cents to $21.85 in afternoon trading on the New York Stock Exchange. Fidelity National Information Services Inc. rose 19 cents to $36.88. Fidelity National Financial rose 22 cents to $42.12.
Copyright 2006 Associated Press