NU Online News Service, May 19, 6:06 p.m. EDT--Fitch Ratings has put Fidelity National Financial, Inc. on a negative ratings watch as a result of its plans to spin off partially its title operations in the third quarter this year.
Fitch also expressed concern about plans for the new title insurance company to borrow $500 million from a new bank facility and pay a special dividend. "The Rating Watch primarily reflects the increased financial leverage at both the title insurance operations and in FNF overall," Fitch said in a prepared statement.
The restructuring announced yesterday follows the recent recapitalization of both FNF and its subsidiary, Fidelity National Information Services (FIS). In addition, 25 percent of FIS was sold to two institutional investors. The debt at FIS is not guaranteed by FNF, and thus is primarily rated on its own strength and weaknesses.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
