S&P: Ratings On Two LandAmerica Operating Companies Revised To ‘R’

NEW YORK, NY--Standard & Poor's Ratings Services has revised its counterparty credit and financial strength ratings on Lawyers Title Insurance Corp. (Lawyers) and Commonwealth Land Title Insurance Co. (Commonwealth) to 'R' from 'BB-'.

Standard & Poor's also said that it withdrew its 'BB-' ratings on Land Title Insurance Co., Title Insurance Co. of America, Transnation Title Insurance Co., and Transnation Title Insurance Co. of NY. These entities were merged into other, larger title insurance subsidiaries. (Standard & Poor's never assigned a rating to United Capital Title Insurance Co., a key member of LandAmerica.)

We revised the ratings on Lawyers and Commonwealth to 'R' following the Nebraska Department of Insurance's (NEDOI) filing of orders of rehabilitation for these companies. Lawyers and Commonwealth are title insurance subsidiaries of LandAmerica Financial Group Inc. (LFG), which filed for bankruptcy protection on Nov. 26, 2008.

It is Standard & Poor's policy to revise the ratings on an insurer to 'R' anytime an insurer is placed under regulatory supervision. NEDOI's actions have no impact on Standard & Poor's 'BB-' ratings on LandAmerica New Jersey Title Insurance Co. (LandAmerica New Jersey), which remain on CreditWatch developing.

Despite the orders of rehabilitation, Standard & Poor's views Fidelity National Financial Inc.'s (FNF) planned acquisition of LFG's title insurance operations (LandAmerica)--including Lawyers and Commonwealth--as a positive for LandAmerica.

Applying FNF's historically effective strategy for managing mortgage cycles should improve LandAmerica's profitability. FNF believes combining the operations will lead to significant cost savings for the consolidated entity. FNF should also benefit from LandAmerica's strong presence in the commercial title insurance industry.

"If the merger is completed, we would likely assign ratings to all of the LandAmerica operating companies, including Lawyers and Commonwealth," said Standard & Poor's credit analyst James Brender.

"However, it is unlikely that we would align the ratings on these entities with those on FNF's title insurance subsidiaries unless the group provides additional explicit support to LandAmerica."

Standard & Poor's generally does not view recently acquired companies as core subsidiaries, but we could come to consider them core if they are fully integrated into the group's strategy and operations. Standard & Poor's would likely downgrade LandAmerica's subsidiaries (except Lawyers and Commonwealth) if the merger is not completed.

Media Contact: Jeff Sexton, New York, (1) 212-438-3448jeff_sexton@standardandpoors.com
Analyst Contacts:
James Brender, New York (1) 212-438-3128
Rodney A Clark, FSA, New York (1) 212-438-7245

S&P: Ratings On Five Mortgage Insurers Put On Watch Negative; Multi-Notch Downgrades Possible

NEW YORK, NY--Standard & Poor's Ratings Services has placed its ratings on five major U.S. mortgage insurers and their core and dependent foreign subsidiaries on CreditWatch with negative implications.

These groups are Old Republic, PMI, MGIC, Radian, and Genworth.

Standard & Poor's also placed its ratings on Radian Asset Assurance Inc. on CreditWatch. Standard & Poor's is still evaluating the impact of this CreditWatch on obligations Radian Asset guarantees.

The ratings on some securities could be placed on CreditWatch negative, but we will not lower any of them.

"The CreditWatch placements reflect greater deterioration in the employment and housing markets than we had anticipated when we last conducted an extensive review of the mortgage insurance sector in late August," explained Standard & Poor's credit analyst James Brender.

"We also have concerns that mortgage insurers' poor operating results--coupled with the disruptions in the capital markets--will prevent them from obtaining additional capital needed to refinance debt maturities, remain compliant with covenants, and maintain appropriate capitalization to remain going concerns."

Media Contact: Jeff Sexton, New York, (1) 212-438-3448, jeff_sexton@standardandpoors.com

Analyst Contacts:
James Brender, New York (1) 212-438-3128
Rodney A Clark, FSA, New York (1) 212-438-7245